Credit card borrowing in the United Kingdom accelerated during November, reaching levels not seen since early 2024. The Bank of England reported that households accumulated an additional £2.1 billion in consumer credit that month, compared to £1.7 billion in October. This uptick occurred as families prepared for Christmas shopping while managing persistent cost-of-living pressures.
The composition of borrowing shifted noticeably. Credit card debt specifically rose by £1 billion, up from £700 million the previous month. Other consumer credit forms, including car finance and personal loans, increased by £100 million to reach £1.1 billion. Annual credit card growth accelerated to 12.1% in November, marking the fastest pace since January 2024.
StepChange, a debt charity, highlighted that households faced mounting difficulties managing everyday expenses without relying on credit. Research by the organization found that approximately 14 million people struggled to afford Christmas celebrations. Rising food prices and elevated costs for festive items added to financial strain, even as the annual inflation rate stood at 3.2%, still above the 2% target.
Despite increased borrowing activity, consumer spending remained cautious during late 2025. Retail sales volumes unexpectedly declined by 0.1% in November amid uncertainty surrounding potential tax increases announced in the autumn budget. KPMG analysis revealed that economic concerns deterred many consumers from increasing purchases. Yet households simultaneously grew their bank deposits by £8.1 billion in November, rising from £6.7 billion in October.
Mortgage approvals for house purchases declined by 500 to 64,500 in November, reflecting weakness in the property market ahead of budget announcements. Economists noted that the increase in savings might indicate financial reorganization in response to anticipated tax policy changes. One analyst suggested limited room for consumer spending growth in 2026, as pre-budget speculation appeared to have minimal impact on household borrowing decisions.
