Nearly half of outstanding credit card balances are attracting interest
July 2026 data · UK Finance update: 16 October 2026
A credit card can be used for everyday purchases paid off promptly, or for borrowing carried over from month to month. UK Finance’s latest published figures offer a reminder that those are very different ways of using the same product.
The July figures
UK Finance reported that 47.8% of outstanding credit card balances incurred interest in July 2026, compared with 47.9% a year earlier. Outstanding balances grew by 9.2% over those twelve months.
Its 16 October update also recorded £23.8 billion of credit card spending by UK cardholders in July, 4.7% more than a year earlier. The spending figure covers UK-issued cards used at home and overseas.
It does not mean half of cardholders paid interest
The 47.8% figure refers to outstanding balances, not the percentage of customers or accounts. One person may owe more than another, and an account may contain different kinds of balance. Turning it into a claim about “half of people” would change what the statistic measures.
It is also worth keeping the months straight. October is when this update appeared; July is the period being measured. Publication dates and spending dates are not interchangeable.
Spending and unpaid balances answer different questions
A person could spend £500 on a card and pay the statement in full. Another could make no new purchases while repaying an older balance. Those illustrative situations show why transaction totals alone cannot explain how long people are borrowing for.
The data does not establish why any particular person carries a balance. A national number cannot tell us whether someone is managing a planned purchase, facing a temporary gap in income or struggling with essential costs.
Find out which part of your bill costs interest
Look at your statement’s balance breakdown and promotional end dates. If there is an interest charge, identify the balance and rate behind it. If there is no charge, check the conditions you need to keep meeting.
A useful note beside your budget is simply: “Amount attracting interest; rate; monthly payment.” It is more actionable than comparing yourself with an average.
Sources & further reading
Sources checked on 3 November 2026. Examples are illustrative unless identified as reported figures or a provider’s terms. General information, not personal financial advice.