The interest rate for credit cards in the UK grew to an all-time high in May 2025, even though the base rate for the Bank of England grew at a slower pace that month. Credit card interest rates tend to be significantly higher than other forms of lending, and the United Kingdom is no exception to this. By May 2025, the average interest rate had increased to ***** percent. The Bank of England base rate stood at **** percent since April 2025 – which was not yet the highest value observed. Nevertheless, the central bank's interest rate grew slower than that of credit cards.

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.

The interest rates of most types of personal loans in the United Kingdom (UK) have increased slightly in 2024. However, the interest rates applied to personal loans of 3,000 British pounds were slightly lower than in the previous year, amounting to ***** percent. Smaller personal loans had, in general, higher interest rates than bigger loans.