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Macro EconomyMedium•23 March 2026•

1 min read

UK Credit Card Spending Drops as Missed Payments Rise in January 2026

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Key Facts

1FICO data showed a typical post-Christmas reduction in spending as consumers prioritized debt repayments.

2Spending levels were lower on a year-on-year basis compared to the previous January.

UK consumer spending saw a significant contraction in January 2026 as households pivoted toward debt repayment following the holiday season. According to the latest FICO data, spending levels were notably lower on a year-on-year basis, reflecting cautious consumer sentiment. However, the report highlighted a concerning trend: a sharp increase in missed credit card payments. This rise in delinquencies suggests that the financial pressures characterizing 2025 have carried over into the new year. The combination of reduced retail activity and higher default risks poses a challenge for UK credit card issuers and the broader banking sector. Market analysts suggest these indicators could weigh on the British Pound and financial stocks like Lloyds and Barclays.