UK Debt Statistics 2026: Average Debt, Credit Cards & Insolvency Data

01The Big Picture: UK Household Debt

UK households owed £1,899.7 billion at the end of March 2025, up £54.3 billion from the year before. That's an extra £1,002 per adult in a single year. (Source: The Money Charity, Bank of England data)

Non-mortgage household debt has doubled in a decade, rising 98% over ten years to reach £18,392 heading into 2026. The OBR forecasts total household debt will hit £2,927 billion by 2030, pushing the average to £98,190 per household.

Want to see what your own numbers look like? The free debt calculator takes about 2 minutes.

02Credit Card Debt

Outstanding UK credit card debt hit £73.2 billion in March 2025, up 4.5% year-on-year. By December 2025, annual credit card borrowing growth had accelerated to 12.4%, the fastest of any consumer credit type. (Source: Bank of England)

Paying only the minimum on a £5,000 credit card at 22% APR takes 27 years to clear. You'll pay over £7,000 in interest, more than the original debt. Read more

February 2026 update: Net credit card borrowing was £0.8 billion in February 2026, with annual growth easing slightly to 12.1% from 12.4% in December 2025. The effective rate on interest-charging credit cards decreased to 21.65%. (Source: Bank of England, Money & Credit Feb 2026)

Despite rising balances, average monthly card spend actually fell 3.7% year-on-year through 2025. People are spending less but paying off even less. (Source: Equifax UK)

Three banks (Lloyds, Barclays, and HSBC) hold 50% of all UK credit card debt. Lloyds alone holds £15.7 billion (21.9% of the market).

If you're carrying credit card debt, see how APR actually works and use the snowball calculator to find your payoff date.

03Consumer Credit & Personal Loans

Total consumer credit growth accelerated through 2025 and into 2026, reaching 8.5% annual growth by February 2026 (up from 8.2% in December 2025 and 6.1% in March 2025). Credit card borrowing led at 12.1%, with other consumer credit (personal loans, car finance, overdrafts) growing at 6.4%. Net consumer credit borrowing in February 2026 was £1.9 billion. (Source: Bank of England, Money & Credit Feb 2026)

Net monthly consumer credit borrowing fluctuated between £0.9 billion and £2.1 billion throughout 2025. The effective interest rate on new personal loans climbed steadily from 8.28% in July to 8.78% in December 2025.

Average household consumer debt (personal loans + credit cards, excluding student loans and mortgages) reached £8,304 by end of 2025. Add student loans (£10,088 average) and you're looking at £18,392 per household in non-mortgage debt. (Source: NimbleFins)

04Savings & Emergency Funds

The savings picture reveals how vulnerable UK households really are:

16% of UK adults have zero savings. Another 21% have less than £1,000. Together, that's roughly 1 in 3 adults who couldn't handle a broken boiler or a car repair without borrowing.

44% of adults stopped or reduced saving in the past 12 months (up from 40% the year before), and 23% used savings just to cover everyday costs. Among those struggling financially, that figure jumps to 40%. (Source: FCA Financial Lives 2024)

If you're deciding between building an emergency fund or paying off debt, read our guide: Emergency fund or pay off debt first?

05Who's in Debt? Demographics Breakdown

By age: The 25–34 age group carries the highest median non-mortgage debt at £5,300. Those over 65 hold 74% less. People aged 25–44 face the most financial pressure from childcare, housing, and student loans. (Source: House of Commons Library)

By employment: 60% of StepChange clients are employed. YouGov polling found 57% of UK adults in problem debt are in full-time work (Jan 2025, up from 52% a year earlier). Debt is as much a wages-vs-costs problem as an unemployment one.

By gender: Men typically carry higher average balances (credit cards and loans), but women are more likely to fall behind on repayments due to lower average incomes and caring responsibilities. Debt is particularly high among lone parents (40%) and women aged 25–34 (35%).

By housing: Private renters are 60% more likely to be in a negative budget than the average household. 1 in 9 private renters in England and Wales were in a negative budget in 2024/25. (Source: Citizens Advice National Red Index 2025)

By credit card usage: 36% of 25–34 year olds use credit cards primarily to cover living necessities, the highest of any age group. Nearly 30% of all UK consumers use credit cards for day-to-day expenses like groceries.

06Cost of Living & Debt

The cost-of-living crisis pushed millions into the red. Citizens Advice estimates 4 million people in England and Wales are trapped in a negative budget, meaning their essential costs exceed their income. (Source: Citizens Advice)

In 2019, around a third of people Citizens Advice helped with debt were in a negative budget. Today, it's half. That means half the people given debt advice have no realistic way of repaying their debts from their income alone.

In 2024, Citizens Advice helped nearly 400,000 people with debt, reaching a record high of 50,869 in a single month (January 2025). Energy debt has been on a particularly steep upward trend since the pandemic.

Average debt for households in a negative budget: £9,963. Debt levels have grown by 25% for people in negative budgets compared to pre-pandemic levels.

CPI inflation was 3.0% in January 2026 (down from 3.4% in December). Energy bills are forecast to fall to ~£1,641/year from April 2026. Some relief, but costs remain far above pre-2021 levels.

07Insolvency Statistics

Individual insolvencies are at their highest level since 2010. In Q3 2025, 33,559 people entered insolvency in England and Wales, up 14.7% from Q3 2024. That's roughly 1 person every 4 minutes. (Source: Insolvency Service)

DRO surge: The abolition of the £90 upfront DRO fee in April 2024 caused a dramatic shift. The 46,063 DROs in the 12 months to July 2025 were nearly double the long-term annual average. DRO numbers hit a record high of 4,190 in August 2025.

Total individual insolvencies in 2025 reached 126,240, 7% higher than 2024 and the highest annual total since 2010. (Source: NimbleFins / Insolvency Service)

If you're worried about insolvency, free help is available: StepChange (0800 138 1111) or National Debtline (0808 808 4000). Many people can avoid formal insolvency with the right plan.

08Debt Advice Demand

Demand for debt advice is at record levels:

StepChange findings (2024): 67% of new clients held credit card debt, the most common type. Average total debt including arrears reached £17,936 per client (+7% year-on-year). Mortgage arrears surged from £6,054 to £10,239 average (+69%).

The FCA Financial Lives Survey found that of 1.7 million people who used debt advice in the past 12 months, 61% said their debts became more manageable. If you need it, use it.

Not ready for formal advice? A free debt payoff plan can show you your timeline and help you take the first step.

09Interest Rates & Borrowing Costs

The Bank of England has cut rates four times since August 2024, bringing the base rate from 5.25% down to 3.75%. Further cuts to 3.25% are expected in 2026 if inflation continues to ease. (Source: Bank of England)

Base rate cuts don't automatically lower credit card APRs. Most cards charge 22%–35% regardless of the base rate. The only way to reduce what credit cards cost you is to pay them off faster. See your payoff timeline

CPI inflation fell to 3.0% in January 2026 (from 3.4% in December). The Bank projects it will reach the 2% target by June 2026. (Source: House of Commons Library)

10Key Takeaways

UK household debt is £1.9 trillion and rising. Non-mortgage debt per household has doubled in a decade to £18,392. See what your debts cost you.

Credit card debt is growing at 12.4% annually, the fastest of any consumer credit type. £73.2 billion outstanding and missed payments up 23%.

1 in 6 adults have zero savings. 1 in 4 have low financial resilience. 40% can't cover a single month's expenses. Even a small buffer helps. Here's how to start.

4.1 million adults are in problem debt and insolvencies are at a 15-year high (126,240 in 2025). Free help: StepChange (0800 138 1111).

61% of those who sought debt advice said their debts became more manageable (FCA). Whether it's a charity or a free calculator, the first step matters most.

11Sources

Every statistic on this page is sourced from publicly available UK data. We update this page quarterly. Last updated: April 2026.

• Bank of England: Money & Credit, February 2026

• Bank of England: Statistics (household debt, money & credit, base rate)

• Office for National Statistics (ONS): Debt

• FCA Financial Lives Survey 2024 (savings, credit, financial resilience)

• Insolvency Service: Official Statistics

• StepChange: Statistics Yearbook 2024

• The Money Charity: Money Statistics

• House of Commons Library: Household Debt

• Citizens Advice: National Red Index 2025

• NimbleFins: Average Household Debt UK

• Equifax UK: Credit Card Market Data

12Using This Data

Journalists, bloggers, researchers and students: You're welcome to cite any statistic on this page. We just ask that you link back to this page as your source: https://trysnowball.co.uk/library/uk-debt-statistics/

For press enquiries or to request additional data breakdowns, email [email protected].

This page is updated quarterly when new data drops from the Bank of England, ONS, StepChange, and the Insolvency Service. Bookmark it to stay current.

If you're carrying debt, the free calculator shows your payoff date in about 2 minutes.