UK credit card borrowing rises at fastest annual rate in almost two years

The Guardian - World NewsCenter-LeftEN 2 min read 100% complete by Richard Partington Senior economics correspondentJanuary 5, 2026 at 04:01 PM

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In November, UK credit card borrowing saw its fastest annual increase in almost two years, according to the Bank of England. Individuals borrowed an additional £2.1 billion in consumer credit, with net credit card borrowing reaching £1 billion, up from £700 million the previous month. The annual growth in credit card borrowing rose to 12.1%, the highest since January 2024. Experts suggest this increase may be due to households using credit to manage rising living costs and finance Christmas spending. Despite increased borrowing, households also increased deposits with banks and building societies. Net mortgage approvals for house purchases decreased, reflecting a slowdown in the UK property market.

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KPMG 40% Capital Economics 40% Alex Kerr 50% StepChange 50% Rachel Reeves 60% Simon Trevethick 60% UK ×290% Bank of England 90%

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credit card borrowing 100% consumer credit 80% cost of living 70% inflation rate 60% household debt 60% christmas spending 50% bank of england 50% mortgage approvals 40% retail sales 40%