The Bank of England has reported a rise in credit card default rates between June and August 2026. This follows a trend of increasing financial strain on households. Source: skintdad.co.uk.
What the Data Shows
The Bank of England’s Credit Conditions Survey, published on 8 October 2026, found that banks and building societies reported rising default rates on credit cards.
The survey recorded a net percentage balance for the period June to August 2026. This is a positive score, meaning lenders are reporting increasing default rates.
What the Score Actually Means
The figure does not mean 25.7% of credit card users have defaulted. Instead, it reflects a weighted average of lender reports on whether default rates are rising or falling.
Each lender’s response is combined into a score. Larger lenders have more influence. A positive score means overall default rates are rising, even if the increase is gradual.
These figures do not indicate how many people are in default. They only show a trend in lender-reported experiences.
Why This Matters for Households
For many families, credit card repayments add pressure to already tight budgets. With rising living costs, everyday spending on food, housing, and energy is growing.
Research shows that the typical non-pensioner household is expected to be around £2,900 worse off than previously forecast for 2026–27.
If a person uses a credit card for daily spending and struggles to repay it, the financial strain can grow quickly. Making only minimum payments can extend interest periods and reduce future disposable income.
What You Can Do If You’re Struggling
There is no need to wait until a default appears on your credit file. Early action can prevent worsening financial issues.
- Contact your card provider early. Explain your financial difficulty. Ask about flexible repayment plans, interest reductions, or frozen charges.
- Work out what you can afford. List your income, essential bills, and existing debt. Prioritise payments like rent, mortgage, and energy — missing these can have serious consequences.
- Avoid borrowing more to cover repayments. Using another credit card or loan to pay off a current debt can increase total debt and extend repayment time.
- Get free debt advice. Organisations like StepChange, National Debtline, and MoneyHelper offer confidential, free support.
What If You’ve Already Missed a Payment?
Act quickly. A single missed payment does not automatically result in a formal default on your credit file.
However, repeated missed payments can damage your credit history. Contact your provider to find out what you owe, whether charges have been added, and what support is available.
If you have multiple debts, a free debt adviser can help create a manageable repayment plan.
What’s Next?
The next Credit Conditions Survey is due on 14 January 2027. It will show whether default rates continued to rise in late 2026.
For now, if you’re struggling with repayments, getting help early is the best step. You don’t need to wait for official data to take action.
Sources & further reading
Featured image: Credit card samp.jpg by Reza luke, CC BY-SA 3.0, via Wikimedia Commons. Image source · License
