Outstanding credit card debt passes £70bn mark

Outstanding credit card debt rose above the £70bn mark at the end of March, according to Equifax’s latest Affordability Barometer.

It comes during a period of continued appetite for credit cards in the UK, following elevated credit card origination levels throughout 2024.

The credit bureau’s data also suggests consumers have been in the mood for promotional offers, with the proportion of new credit cards subject to promotional terms hitting a peak of 50% in March.

Reflecting on the findings, Equifax’s chief data and analytics officer, Paul Heywood, said: “While growth in new UK credit cards may help contribute to economic recovery, lenders must also continue to monitor the potential impact associated with increased household debt.

“We’re five years on from the pandemic and its lockdowns, and for some consumers, the social restrictions created a chance to clear the slate on debts. But with ongoing cost of living pressures, overall debt has generally now surpassed pre-pandemic levels.

“This trend also outstrips wage growth over the same period and shows UK consumers increasingly see credit cards as a regular option to manage their spending and wider finances.”