Average Credit Card Debt in the UK – Quick Facts and Tips
If you’ve ever glanced at your statement and felt a pinch, you’re not alone. The typical UK household carries a credit‑card balance that can surprise you. Knowing the average helps you see where you stand and whether your debt is a red flag or just normal.
What the Numbers Look Like Right Now
According to the latest data from the Office for National Statistics, the average credit‑card debt per adult in the UK is around £1,250. For households that do use cards, the figure climbs to roughly £2,500. Young adults (18‑30) tend to sit nearer the £800 mark, while those over 50 average nearer £1,600. These numbers shift a bit each quarter, but they give a solid baseline.
Why the Average Matters for You
Seeing that average isn’t just trivia – it tells you how lenders might view your credit profile. If you’re above the typical range, lenders could see higher risk, which might raise your interest rates or limit credit offers. Staying near or below the average can keep your credit score healthier and your interest costs lower.
Besides the score impact, higher balances mean more interest paid over time. Even a modest 18% APR on a £2,000 balance adds about £360 a year in interest. That’s money you could be using for savings, a vacation, or paying down other bills.
So, how do you keep your balance in check? First, track every purchase. Use a budgeting app or a simple spreadsheet to note the amount, date, and category. Seeing the numbers on screen often makes you think twice before swiping.
Second, aim to pay more than the minimum. The minimum payment on a £1,200 balance at 18% is roughly £30 a month, but paying £100 cuts the interest dramatically and clears the debt faster.
Third, consider a balance‑transfer card with a 0% intro period if you have good credit. Move the debt, avoid interest for 12‑18 months, and focus on paying down the principal. Just watch for transfer fees and the rate that kicks in after the intro ends.
Fourth, set a realistic limit for yourself. If you know your average debt should stay around £1,000, treat that as your ceiling. When you hit it, pause new purchases until you bring the balance down.
Finally, review your statements every month. Look for hidden fees, unexpected interest, or duplicate charges. Catching a small error early can save you pounds over the year.
Remember, the average is a guide, not a rule. Your personal situation – income, expenses, and financial goals – matters most. Use the numbers to gauge where you are, then craft a plan that fits your life.
By staying aware of the average credit‑card debt, tracking what you spend, and paying more than the minimum, you can keep your balance manageable, protect your credit score, and free up cash for the things that really count.
