Fall in credit card sales in October

Average balances, meanwhile, fell slightly month-on-month – down 0.4% – but remain 9.8% higher than in October 2022. Additionally, the percentage of payments to balance fell – now standing at 37.8% – while the number of customers missing one payment decreased month-on-month by 4.3%.  

In contrast, those missing two payments rose by eight percent, while the average balance where one payment has been missed has continued to increase – rising by one percent from September year-on-year, now standing at £2,180.  

Commenting on this, FICO said: “Although the average missed payment balance has been increasing throughout much of 2023, when comparing the ratio of missed payment balances to the overall credit card balance, this has been fairly stable.

“This suggests missed payment balances have not increased at a faster rate than the overall balance. However, this ratio has increased by 1.48% month-on-month for the average one missed payment balance. With increased seasonal spend expected over the coming months, risk teams should monitor this closely.”