The average credit card purchase value in the United Kingdom was over ***British pounds as of August 2025. This was slightly lower than in the same month of the previous year and lower than in January 2023, when it reached an all-time high, with each individual credit card transaction averaging **** British pounds. This contrasted with April 2020, when coronavirus measures caused the average credit card value to decline. However, the total credit card debt in the UK in June 2025 grew almost six percent year-on-year.

The UK's average credit card debt per household grew by *** British pounds between December 2021 and December 2022, the first increase since 2020. Standing at ***** British pounds at December 2022, the figure contrasts with the decline in 2020 – when the debt declined from ***** British pounds to ***** British pounds. That particular drop was likely a result of Covid-19's economic impact, and consumers trying to get rid of their credit card debt. The increase in 2022 may be caused by growing interest rates and the cost of living crisis beginning to take shape.

Clients seeking financial advice from the debt charity StepChange in the United Kingdom had on average approximately ***** British pounds of unsecured credit card debt in 2022. On average, the new clients of this charity owed more unsecured debt from personal loans than from any other type of credit.

Daily, weekly and monthly data showing seasonally adjusted and non-seasonally adjusted UK spending using debit and credit cards. These are official statistics in development. Source: CHAPS, Bank of England.

In the first half of 2024, the total value of debt from loans to households in the United Kingdom amounted to approximately ************ British pounds. It was in 2004, when household debt surpassed the ************ British pounds mark. Debts can be formed in a number of ways. The most common forms of debt for households include credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.

In the 4th quarter of 2024, the debt of households in the United Kingdom amounted to ***** percent of their income. This indicator shows the average level of indebtedness of the general population and their ability to repay their debts. The total value of household debt (total liabilities and loans to households) has increased annually since 2000. Debt to income ratio increased during the pandemic As we have seen here, households have been decreasing their indebtedness levels in the past years. However, the volume of new consumer lending actually soared between 2022 and 2024. Meanwhile, the growth rate of mortgages in the UK has remained lower these past years, but it has also shown an increase on amount of lending.

Indebtedness in Europe The household debt of many countries in Europe as a share of their disposable income in 2024 was over 100 percent. That was mostly the case for Northern and Western European countries, such as Norway, the Netherlands, and Denmark. Germany and Austria were some of the largest exceptions, as they were among the few countries in that part of Europe with households' debt representing less than ** percent of their income.

SME - Synthetic UK Businesses financial statistics

Contains the financial and basic information about the 1000 small and medium enterprises in the UK. It contains attributes as far-reaching as the profit and losses of the entities and even their credit scores. It can be used to analyze the survival and success prediction of the enterprise.

This sample data is part of the statistically accurate representation of the UK economy that can be found at https://nayaone.com/digital-twin/. Our mission is democratization and quality data governance in areas where the lack of data is a major hurdle for innovation and progress. To learn more, contact us: contact@nayaone.com

Content

All the Synthetic datasets have been generated with programmatic stimulation to represent the real-world data. Description of the datasets are as follows: - Account Receivable: Funds that customers owe your company for products or services that have been invoiced. - Businesses: List of enterprises and their information - Covid: Financial stats of the companies during the pandemic waves - Credit Account History: History of a credit account and usage of - Credit Card History: History of the credit card usage and debt amount of an enterprise - Credit Rating: credit rating of listed businesses which is a quantified assessment of the creditworthiness of a borrower in general terms or with respect to a financial obligation. - Director: UK Individual who is on the Director position in companies listed in Businesses - Factoring: Financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount. - Individual: UK Individuals information - Loan: Information of the paid and unpaid Loans by the enterprise

Acknowledgements

The real data stats used to generate synthetic data are mainly gathered from the ONS, Public datasets and Known statistics.

Inspiration

This data can be used to train Machine learning models for better accuracy.

Underlying data from annex B for the report that uses data from the YouGov DebtTrack surveys to update trend information about credit use and the extent of consumer indebtedness in Britain. The analysis suggests a continued decrease in the proportion of households using unsecured credit, but little change in the average amount of unsecured debt among credit users. The data also indicated a decline in the incidence of financial difficulty.

Snapshot img

Debt Collection Software Market Size 2025-2029

The debt collection software market size is valued to increase by USD 3.01 billion, at a CAGR of 8.8% from 2024 to 2029. Rise in non-performing loans (NPLs) will drive the debt collection software market.

Market Insights

APAC dominated the market and accounted for a 43% growth during the 2025-2029.
By Deployment - On-premises segment was valued at USD 3.01 billion in 2023
By Industry Application - Small and medium enterprises segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 89.16 million 
Market Future Opportunities 2024: USD 3009.80 million
CAGR from 2024 to 2029 : 8.8%

Market Summary

The market witnesses significant growth due to the increasing incidence of non-performing loans (NPLs) worldwide. Businesses across industries are turning to advanced technologies to streamline their debt collection processes and mitigate financial losses. One real-world scenario involves a global manufacturing company aiming to optimize its supply chain by reducing outstanding debts. By implementing a robust debt collection software solution, the company can automate communication with debtors, integrate credit risk assessment tools, and implement workflow automation to expedite the collection process. The integration of advanced technologies, such as artificial intelligence (AI) and machine learning (ML), is a key trend in the market. These technologies enable predictive analytics, allowing businesses to identify potential debtors at risk and proactively engage with them. Furthermore, cloud-based solutions offer scalability and flexibility, enabling businesses to manage their debt collection operations more efficiently. Despite the benefits, the high cost of debt collection software remains a challenge for small and medium-sized enterprises (SMEs). However, as competition intensifies and regulatory requirements become more stringent, investing in a comprehensive debt collection solution becomes increasingly essential for businesses to maintain financial health and operational efficiency.

What will be the size of the Debt Collection Software Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free SampleThe market continues to evolve, offering advanced solutions to streamline regulatory compliance checks, customer relationship management, dispute resolution process, and payment schedule optimization for businesses. One significant trend in this market is the integration of automated collection letters, payment reminder systems, and collection agency interfaces, enabling collection team productivity and call tracking. These tools have proven effective in improving collection efficiency, reducing payment processing fees, and enhancing debt recovery strategies. For instance, companies have reported a 25% increase in recovery rates by implementing automated dunning processes and advanced reporting features. Furthermore, debt portfolio analysis, account reconciliation tools, and risk mitigation strategies have become essential components of debt collection software, ensuring payment plan management and legal hold management are seamlessly integrated. Additionally, fraud detection systems and legal case management tools provide an extra layer of security, safeguarding against data breaches and ensuring compliance with evolving regulations. By investing in these solutions, businesses can optimize their collection agency workflow, improve customer communication channels, and ultimately boost their bottom line.

Unpacking the Debt Collection Software Market Landscape

In the debt collection industry, businesses increasingly leverage advanced software solutions to streamline operations, optimize strategies, and ensure regulatory compliance. One key area of focus is credit bureau integration, which enables real-time access to consumer credit information for informed collection decisions. Another critical aspect is collection strategy optimization, resulting in a 15% increase in recovery rates on average. Additionally, regulatory compliance modules and reporting tools help align with legal requirements, reducing potential penalties and fines by up to 20%. Predictive analytics models and risk assessment scoring further enhance debt recovery platforms, enabling early warning systems to identify and address delinquent accounts before they escalate. Furthermore, customer data security, payment gateway integration, and financial institution integration ensure secure transactions and improved customer experience. Other essential features include audit trail logging, legal compliance features, dunning letter generation, agent performance tracking, accounts receivable automation, debt portfolio management, payment processing integration, and collection agency software. Overall, these s

Denmark, the Netherlands, and Norway were among the European countries with most indebted households in 2023 and 2024. The debt of Dutch households amounted to *** percent their disposable income in the 2nd quarter of 2024. Meanwhile, Norwegian households' debt represented *** percent of their income in the 3rd quarter of 2023. However, households in most countries were less indebted, with that ratio amounting to ** percent in the Euro area. Less indebtedness in Western and Northern Europe There were several European countries where household's debts outweighed their disposable income. Most of those countries were North or West European. However, the indebtedness ratio in Denmark has been decreasing during the past decade. As the debt of Danish households represented nearly *** percent in the last quarter of 2014, which has fallen very significantly by 2024. Other countries with indebted households have been following similar trends. The households' debt-to-income ratio in the Netherlands has also fallen from over *** percent in 2013 to *** percent in 2024. Debt per adult in Europe In Europe, the value of debt per adult varies considerably from an average of around 10,000 U.S. dollars in Europe to a much higher level in certain countries such as Switzerland. Debts can be formed in a number of ways. The most common forms of debt include credit cards, medical debt, student loans, overdrafts, mortgages, automobile financing and personal loans.

The Family Resources Survey (FRS) has been running continuously since 1992 to meet the information needs of the Department for Work and Pensions (DWP). It is almost wholly funded by DWP.

The FRS collects information from a large, and representative sample of private households in the United Kingdom (prior to 2002, it covered Great Britain only). The interview year runs from April to March.

The focus of the survey is on income, and how much comes from the many possible sources (such as employee earnings, self-employed earnings or profits from businesses, and dividends; individual pensions; state benefits, including Universal Credit and the State Pension; and other sources such as savings and investments). Specific items of expenditure, such as rent or mortgage, Council Tax and water bills, are also covered.

Many other topics are covered and the dataset has a very wide range of personal characteristics, at the adult or child, family and then household levels. These include education, caring, childcare and disability. The dataset also captures material deprivation, household food security and (new for 2021/22) household food bank usage.

The FRS is a national statistic whose results are published on the gov.uk website. It is also possible to create your own tables from FRS data, using DWP’s Stat Xplore tool. Further information can be found on the gov.uk Family Resources Survey webpage.

Secure Access FRS data
In addition to the standard End User Licence (EUL) version, Secure Access datasets, containing unrounded data and additional variables, are also available for FRS from 2005/06 onwards - see SN 9256. Prospective users of the Secure Access version of the FRS will need to fulfil additional requirements beyond those associated with the EUL datasets. Full details of the application requirements are available from http://ukdataservice.ac.uk/media/178323/secure_frs_application_guidance.pdf" style="background-color: rgb(255, 255, 255);">Guidance on applying for the Family Resources Survey: Secure Access.

FRS, HBAI and PI
The FRS underpins the related Households Below Average Income (HBAI) dataset, which focuses on poverty in the UK, and the related Pensioners' Incomes (PI) dataset. The EUL versions of HBAI and PI are held under SNs 5828 and 8503, respectively. The Secure Access versions are held under SN 7196 and 9257 (see above).

FRS 2023-24

Alongside the usual topics covered, the 2023-2024 FRS includes new variables on veterans (ex-armed forces, former regulars and reserves); care leavers (where young adults were previously living in care, during their teenage years); and, for the self-employed, length of time in that occupation. For doctors, we add clarifying variables for NHS vs private earnings streams. There are new variables on food support from friends/relatives, which complement the existing food bank and household food security set. 2023-2024 also includes Cost of Living Payment variables, including those on certain state benefits and the Warm Homes Discount scheme.

The achieved sample was over 16,500 households (28,500+ adults). A large majority of interviews were face-to-face with a minority being by telephone.

The BENUNIT table contains a raft of variables on the new material deprivation question set; see GOV.UK for background.

This version of the dataset (End User Licence) adds the DEBT table for the first time this year. The table contains responses on credit card debt, loan debt, hire purchase debt and store card debt.

Please send any feedback directly to the FRS Team Inbox: team.frs@dwp.gov.uk

Documentation

Many variables in the data files are fully labelled, but additional details can be found in the frs2324_variable_listing_eul.xlsx document.

This statistic displays the average amount owed in credit or store card debt in the United Kingdom (UK) in 2017, by age group. Adults aged between 45 and 54 years of age had the highest amount of debt in credit/store cards, with an average of nearly *** thousand British pounds. Those aged over 75 years had the lowest average debt in credit/store cards, with an average of ** British pounds in 2017.

The average amount of buy now, pay later debt from a UK consumer grew by several percent between 2021 and 2020 - although values did differ per BNPL platform. Klarna and Clearpay - two of the most downloaded BNPL apps in the United Kingdom - also had some of the lowest debts per capita compared to some of the other leading BNPL platforms. The source does not explain why these differences exist, although it does mention that most consumers took significantly longer than the average repayment time limit of ** days. This included both Klarna as well as Clearpay, as ***** percent and ** percent of respondents, respectively, felt they would not be able to pay back their money to the two platforms within ** days after a purchase. In general, however, repayments were outstripping new lending since the coronavirus pandemic, with regards to credit card debt in the UK.

This dataset provides values for INTEREST RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Most of the overdue money for bills and loans of people who sought debt advice in 2022 came from mortgage payments. On average, clients who came to the charity StepChange seeking credit counseling had nearly ***** British pounds for rent payments past due. Meanwhile, that group of people also owed over ***** British pounds on payments for dual fuel, which is a type of utility where households get their gas and electricity supply from the same provider.