FICO: Card spend remains "typical"

FICO’s monthly report is based on the largest consortium of UK cards data.

Average monthly spend hit £760, which tied with December 2021 as the highest in more than two years. It also marked a 10% month-on-month increase, which FICO said was “typical behaviour” in card spend for the time of year.

Average active balance (£1,554) also rose month-on-month, although there was no change month-on-month in percentage of payments to balance which suggested sustained pragmatic management of credit card accounts.

Inflation appeared to be having an impact, due to a small uplift in the average balance for accounts missing one payment.

A FICO spokesperson said they believed: “Inflationary impacts will be worst for those already identified as in persistent debt or potentially new candidates for that designation.
 
“Populations most vulnerable to inflation include those living on fixed incomes, as well as lower-income households without savings in reserve, especially where wages are increasing more slowly than the cost of living.

“Lenders are encouraged to perform segmentation analysis on their portfolios, to ensure that their web and mobile applications encourage consumers in distress to make contact at the first indications of difficulty, and to consider establishing special payment plans for those in inflation’s grip.”