FX.co ★ UK Consumer Credit Growth at 13-Month Low

In May 2025, the net borrowing of consumer credit by UK individuals fell to £0.9 billion, marking the lowest level since April 2024, and came in below market expectations of £1.1 billion. Specifically, net borrowing via credit cards dropped to £0.1 billion from £1.2 billion. Meanwhile, net borrowing through other consumer credit avenues, such as car dealership financing and personal loans, slightly declined to £0.7 billion from £0.8 billion. The overall annual growth rate for consumer credit reduced to 6.5% from 6.7%. During the same period, the annual growth rate for credit card borrowing decreased to 9.2% from 9.9%, while the growth rate for other forms of consumer credit held steady at 5.3%. The effective interest rate on interest-charging overdrafts fell by 7 basis points to 22.28% in May. Conversely, the effective rate on interest-charging credit cards rose by 9 basis points to 21.54%, and for new personal loans to individuals, the effective rate increased by 3 basis points to 8.72%.