UK credit card balances hit record £1,980 in July for second month - FICO

Average active credit card balances in the UK rose 0.4% month-on-month to a record GBP 1,980 in July, marking the second consecutive month at a record high and a 4.7% increase year-on-year, according to FICO's UK card report. Despite softer spending, which fell 2% month-on-month to GBP 815, repayment momentum improved as the share of balance paid increased 0.9% to 33.6%. However, arrears worsened, with one-payment misses climbing 11.5% month-on-month to 1.5%, and three-payment misses rising 9.6% to 0.2%. New FCA BNPL affordability checks, effective July 15, could pressure card balances