The report sheds light on UK credit card issuer data during June and July
Credit cards spending in the UK recovered after a dramatic fall. Source: unsplash.com
According to Payments Cards & Mobile, UK’s spending in June started to grow, up 13% in May and by a further 11% in July to ￡598.
That follows the dramatic fall in average spending on UK credit cards for January to May 2020 down 27% year on year.
From January to June 2020, spending on cards dropped 8% year on year.
Along with that, the percentage of active accounts started to stabilize and marginally grew in June and July. Nevertheless, it is still 6% lower than in July 2019.
The report reveals that during June and July, overall card limits reached their highest levels since at least 2002. They remain noticeably higher than in April 2008, during the last financial crisis. 39% of accounts have limits in the range of ￡5,001 to ￡10,000. Although, their average balance is ￡1,207.
The percentage of payments to balance dropped in June, but in July increased to 28%. Nevertheless, they are still 14% lower than in July 2019.
We’ve reported that four?in ten consumers in Europe have experienced a drop in their household income due to the COVID-19 pandemic
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