7th February 2026
Credit cards were once marketed as symbols of flexibility and convenience.
Today, they are increasingly becoming shackles of persistent debt for millions of households across the UK.
Recent figures show that average household credit card debt stood at £2,572 in 2025, with total outstanding balances climbing to £76.1 billion, up 6.6% in just one year. This is not a marginal uptick and it is a warning sign of a deepening financial strain.
The latest YouGov survey underscores how widespread the problem has become. A significant share of respondents admitted they are unable to clear their balances each month, instead rolling over debt and incurring high interest charges.
Many households are trapped in what regulators call "persistent debt" where repayments barely cover interest and charges, leaving the principal untouched. For some, this cycle has lasted years, eroding financial resilience and creating a permanent drag on disposable income.
The survey also revealed a troubling psychological dimension: a majority of those in persistent debt reported feelings of anxiety, shame, and helplessness.
Credit cards, once seen as tools of empowerment, are now viewed by many as instruments of entrapment. Younger adults, renters, and lower‑income households are disproportionately affected, reflecting broader inequalities in financial security.
The scale of the problem is not just personal—it is systemic. Rising credit card debt coincides with stagnant wages, high housing costs, and inflationary pressures on essentials.
For lenders, persistent debt is profitable, but for society it is corrosive. It reduces consumer spending power, increases vulnerability to economic shocks, and deepens the divide between those who can manage credit and those who cannot.
The question is whether government and regulators will act decisively. Options include stricter caps on interest rates, mandatory interventions when accounts show signs of persistent debt, and stronger promotion of alternatives such as credit unions or debt consolidation tools. Without such measures, the YouGov survey suggests the problem will only worsen, leaving millions stuck in a cycle of repayment without relief.
Ridiculous as it seems some people are still paying interest on a Costa coffee they innocently paid on their credit card over 10 years ago. So think hard what you use a credit card to pay for and perhaps less convenient and old fashioned - PAY IN CASH.