Decrease in missed payments for second month in a row

Based on the data from November 2022, the credit reporting agency said – while it’s the second month in a row this has dropped – the figure is nine percent higher than during the same period in 2021. There’s also been an increasing trend seen since May 2022 for customers missing two payments, and since June 2022 for those missing three payments.  

Year on year, there was a 14.8% increase for those missing two payments since November 2021 – likely, according to FICO, to be driven by a combination of the exhaustion of savings built up during the pandemic, increasing interest rates and continued high levels of inflation.  

As for the percentage of payments to balance, this dropped again in November by 2.8% to 39.3%, and is down 1.5% year on year. This is expected to continue as consumers’ savings reduce and cost-of-living pressures are expected to continue well into 2023. 

Credit cards for cash withdrawals, meanwhile, dropped month on month by 10.4%.  

Book your place for Credit Week 2023. Bringing together the entire ecosystem of credit and financial services professionals, Credit Strategy hosts an unmissable week of learning, networking and celebrating at Credit Week 2023.