UK card trends for March 2022
In the latest FICO’s (www.fico.com) Credit Card Market Report for March 2022, early results show that credit card payments have yet to show signs of financial distress but with repayments remaining a priority for credit card holders it suggests that there will be greater reliance on credit over the coming months as the cost-of-living crisis deepens due to higher inflation.
Compared to February, average card spend dropped marginally by just under 2%, and with the percentage of payments to balance increasing by just over 2% it indicates consumers are taking a pragmatic caretaking of credit card accounts.
“There are, however, clear signs of price pressures impacting finances with a 16% month-on-month increase in accounts that are one month in arrears. Accounts two months in arrears are also increasing, by over 6% percent month-on-month. However, the percentage of accounts with three missed payments has dropped by over 7% month-on-month,” says FICO. “Remaining vigilant to repayment trends over the next few months will be critical for lenders to ensure vulnerable households are given the support they need.”