Total credit card debt in the UK grew by over ****billion British pounds between March and April 2025, now reaching a similar level of debt as seen in early 2020. The annual growth rate of credit card debt stayed about the same in April 2025, reaching *** percent when compared to aApril 2024. The growth rate in 2024 has been decreasing until 2025 where it started to increase again, which may potentially be attributed to growing interest rates and the cost of living crisis.

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.

Key information about United Kingdom Household Debt: % of GDP

• United Kingdom household debt accounted for 81.6 % of the country's Nominal GDP in Sep 2024, compared with the ratio of 81.8 % in the previous quarter.
• UK household debt to GDP ratio is updated quarterly, available from Mar 1987 to Sep 2024.
• The data reached an all-time high of 108.5 % in Mar 2010 and a record low of 55.6 % in Mar 1987.

• In the latest reports, UK Household Debt reached 3,076.4 USD bn in Sep 2024.
• Money Supply M2 in UK increased 2.2 % YoY in Dec 2024.
• UK Foreign Exchange Reserves was measured at 112.5 USD bn in Jan 2025.
• The Foreign Exchange Reserves equaled 1.4 Months of Import in Oct 2024.
• UK Domestic Credit reached 4,866.2 USD bn in Dec 2024, representing an drop of 1.3 % YoY.
• The country's Non Performing Loans Ratio stood at 1.0 % in Dec 2022, compared with the ratio of 1.0 % in the previous year.

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.

Key information about United Kingdom Household Debt

• United Kingdom Household Debt reached 3,076.4 USD bn in Sep 2024, compared with the reported number of 2,873.8 USD bn in the previous quarter
• UK Household Debt: USD mn data is updated quarterly, available from Mar 1987 to Sep 2024
• The data reached an all-time high of 3,298.5 USD bn in Jun 2008 and a record low of 406.9 USD bn in Mar 1987

• In the latest reports, United Kingdom Household Debt accounted for 81.5 % of the country's Nominal GDP in Sep 2024
• Money Supply M2 in United Kingdom increased 3,931.4 USD bn YoY in Oct 2024
• United Kingdom Foreign Exchange Reserves was measured at 115.5 USD bn in Nov 2024
• The Foreign Exchange Reserves equaled 1.4 Months of Import in Oct 2024
• United Kingdom Domestic Credit reached 5,119.2 USD bn in Aug 2024, representing an drop of 0.9 % YoY

The average credit card purchase value in the United Kingdom was over ***British pounds as of May 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 May 2025 grew almost six percent year-on-year.

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.

Consumer Credit in the United Kingdom increased to 1622 GBP Million in July from 1471 GBP Million in June of 2025. This dataset provides the latest reported value for - United Kingdom Consumer Credit - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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.

United Kingdom UK: Net External Debt: Central Bank: Long Term: Trade Credit and Advances data was reported at 0.000 USD mn in Jun 2016. This stayed constant from the previous number of 0.000 USD mn for Mar 2016. United Kingdom UK: Net External Debt: Central Bank: Long Term: Trade Credit and Advances data is updated quarterly, averaging 0.000 USD mn from Mar 2016 (Median) to Jun 2016, with 2 observations. United Kingdom UK: Net External Debt: Central Bank: Long Term: Trade Credit and Advances data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.QEDS: Net External Debt.

United Kingdom UK: Gross External Debt: General Government: Long Term: Trade Credit and Advances data was reported at 0.000 USD mn in Jun 2013. This stayed constant from the previous number of 0.000 USD mn for Mar 2013. United Kingdom UK: Gross External Debt: General Government: Long Term: Trade Credit and Advances data is updated quarterly, averaging 0.000 USD mn from Mar 1999 (Median) to Jun 2013, with 58 observations. United Kingdom UK: Gross External Debt: General Government: Long Term: Trade Credit and Advances data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: QEDS: Gross External Debt: by Sector and Instrument.

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Debt Settlement Market Size 2024-2028

The debt settlement market size is forecast to increase by USD 5.07 billion at a CAGR of 10.3% between 2023 and 2028.

The market is experiencing significant growth due to the increasing trend of consumers seeking relief from mounting credit card debts. One-time debt settlement has gained popularity as an effective solution for individuals looking to reduce their outstanding debt balances. However, the time-consuming nature of negotiations between debtors and creditors poses a challenge for market expansion. Despite this, the market's strategic landscape remains favorable for companies offering debt settlement services. Key drivers include the rising number of consumers struggling with debt, increasing awareness of debt settlement as a viable debt relief option, and the growing preference for affordable and flexible debt repayment plans.
Companies seeking to capitalize on market opportunities should focus on streamlining the negotiation process, leveraging technology to enhance customer experience, and building trust and transparency with clients. Effective operational planning and strategic partnerships with creditors can also help companies navigate the challenges of a competitive and complex market.

What will be the Size of the Debt Settlement Market during the forecast period?

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The market encompasses a range of companies offering financial wellness programs to help consumers manage and reduce their debt. These programs include medical Debt collection, consumer debt relief, and financial education resources. Online financial resources and debt management software are increasingly popular, providing consumers with affordable debt solutions and debt negotiation strategies. However, it's crucial for consumers to be aware of debt settlement scams and their settlement success rates. Debt consolidation loans and financial planning tools are also viable options for responsible debt management. Furthermore, financial literacy education and workshops are essential for consumers to understand debt reduction calculators and credit reporting errors.
Consumer financial protection agencies offer financial counseling services and financial planning advice to promote financial wellness strategies and responsible borrowing. Student loan forgiveness programs are also gaining traction in the market. Overall, the market for debt settlement and financial wellness solutions continues to evolve, with a focus on providing accessible and effective debt relief options for consumers.

How is this Debt Settlement Industry segmented?

The debt settlement industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Type

  Credit card debt
  Student loan debt
  Medical debt
  Auto loan debt
  Unsecured personal loan debt
  Others


End-user

  Individual
  Enterprise
  Government


Distribution Channel

  Online
  Offline
  Hybrid


Service Type

  Debt Settlement
  Debt Consolidation
  Debt Management Plans
  Credit Counseling


Provider Type

  For-profit Debt Settlement Companies
  Non-profit Credit Counseling Agencies
  Law Firms
  Financial Institutions


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa



  APAC

    China
    India
    Japan
    South Korea


  South America



  Rest of World (ROW)

By Type Insights

The credit card debt segment is estimated to witness significant growth during the forecast period.

The market experiences significant activity due to the escalating credit card debt among consumers. In India, for instance, the rising financial hardships faced by borrowers are evident in the increasing credit card defaults. The latest data indicates that credit card defaults in India reached 1.8% in June 2024, a notable increase from 1.7% six months prior and 1.6% in March 2023. This trend underscores the mounting financial pressures on consumers. The outstanding credit card debt in India mirrors this trend, with approximately USD3.25 billion in outstanding balances as of June 2024, a slight increase from the previous year.

Debt elimination and negotiation strategies, such as debt relief programs and debt consolidation, have become increasingly popular among consumers seeking financial relief. Credit reporting agencies play a crucial role in this process, as they maintain and report consumers' credit histories to lenders. Student loan debt, medical debt, tax debt, and payday loans are other significant contributors to the market. Consumers often turn to debt validation, credit repair, and financial coaching for guidance in managing their debts. Online platforms, mobile apps, and budgeting tools have become

Credit card issuance revenue is slated to dip at a compound annual rate of 7.3% over the five years through 2025-26 to £20.5 billion, including estimated growth of 9.5% in 2025-26. The cost-of-living crisis has been both a blessing and a curse – on the one hand, households have turned to credit cards to pay for necessities as disposable incomes have taken a hit; on the other, it’s caused a higher rate of default and a lower level of total spending. Rampant inflation has made revenue very volatile. Drops in disposable income have left households scrambling to pay for necessities, with the ONS finding that 21% of adults had to use personal loans or credit cards to afford their living costs across 2023-24. Credit card issuers earn a large portion of their revenue from interest income. When the Bank of England ramped up interest rates to curb spiralling inflation over the two years through 2023-24, issuers saw their revenue skyrocket. Although interest rate cuts occurred over 2024-25, the average rate issuers charged borrowers continued to climb, reflecting the rising number of defaults, and issuers seeking to maintain profitability after being forced to raise provisions to cover losses. Interest rates will continue to drop in 2025-26, but this will make borrowing more affordable and reduce the likelihood of defaults, supporting lending activity and aiding revenue growth during the year. The likely decline in defaults will also allow issuers to reduce provisions, lifting the average industry profit margin to 5.9% in 2025-26. Credit card issuance revenue is forecast to expand at a compound annual rate of 4.1% over the five years through 2030-31 to reach £19.3 billion. Demand for credit cards from younger demographics is set to pick up in the coming years, with TransUnion finding more Gen Z consumers getting credit cards in 2023 compared to Millennials a decade earlier, positioning the industry for solid growth. The intensifying threat of buy-now-pay-later platforms will also cool as the FCA clamps down on the industry, introducing new regulations that increase transparency and checks to ensure borrowers can repay their debt. Issuers will also seek to capitalise on the growing market of environmentally conscious consumers, using recycled plastics and biodegradable alternatives for credit cards. This will give smaller issuers a healthy source of competition to compete with more established companies, weighing on market share concentration.

As of late October 2024, most of the outstanding consumer lending in the United Kingdom (UK) were overdrafts, as well as loans and advances other than credit cards. Consumer credit peaked in February 2020, but dropped sharply two months later before slowly starting to recover again. The category other, which includes overdrafts and other loans and advances made up most of the outstanding credit. Meanwhile, credit cards amounted to approximately a third of the outstanding consumer loans. Nevertheless, credit cards made up most of the new monthly consumer lending in the UK. A likely reason for this discrepancy is that credit card debt tends to be paid in a shorter term than other types of credit.

UK: Gross External Debt: Other Sectors: Short Term: Trade Credit and Advances data was reported at 1.638 USD bn in Mar 2018. This records an increase from the previous number of 1.635 USD bn for Dec 2017. UK: Gross External Debt: Other Sectors: Short Term: Trade Credit and Advances data is updated quarterly, averaging 1.635 USD bn from Mar 1999 (Median) to Mar 2018, with 77 observations. The data reached an all-time high of 1.658 USD bn in Dec 2008 and a record low of 1.595 USD bn in Dec 2012. UK: Gross External Debt: Other Sectors: Short Term: Trade Credit and Advances data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: QEDS: Gross External Debt: by Sector and Instrument.

United Kingdom UK: Gross External Debt: Deposit Taking Corporations excl Central Bank: Short Term: Trade Credit and Advances data was reported at 0.000 USD mn in Jun 2013. This stayed constant from the previous number of 0.000 USD mn for Mar 2013. United Kingdom UK: Gross External Debt: Deposit Taking Corporations excl Central Bank: Short Term: Trade Credit and Advances data is updated quarterly, averaging 0.000 USD mn from Mar 1999 (Median) to Jun 2013, with 58 observations. United Kingdom UK: Gross External Debt: Deposit Taking Corporations excl Central Bank: Short Term: Trade Credit and Advances data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: QEDS: Gross External Debt: by Sector and Instrument.

Gross Ext. Debt Pos., Other Sectors, Short-term, Trade credit and advances, USD in United Kingdom was reported at 1638140700 USD in 2025, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Kingdom - Gross Ext. Debt Pos., Other Sectors, Short-term, Trade credit and advances, USD - actual values, historical data, forecasts and projections were sourced from the World Bank on September of 2025.

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.

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.