Financial resilience in the UK remains a significant concern. According to the FCA’s Financial Lives survey (published May 2025), approximately 24% of UK adults (13.1 million people) are now classified as having 'low financial resilience.' Furthermore, one in ten households currently has no cash savings at all, a metric that more accurately reflects the heightened risk profile for modern borrowers compared to historical savings ratios. These figures are particularly alarming when taken alongside the continued rise in credit card lending.

Rise in Credit Card Lending in the UK

Borrowing levels continue to climb across the country. At the end of 2025, the average credit card debt per UK household reached £2,744. This figure represents a notable 15% rise over the last ten years, highlighting a sustained reliance on revolving credit to manage household expenses. Credit card balances are a significant source of household debt in the UK, and the trend of increased credit card lending continues.

Many consumers delay paying back credit card debt by taking advantage of 0% interest purchase and balance transfers deals. While these tools can be useful for customers to pay back debt without interest charges, they can result in consumers carrying debt for longer if the debt just gets moved from card to card. As we discussed in our article Is the Growth in 0% Purchases Cards Good or Bad for Consumers, longer 0% periods are not always beneficial.

UK Savings Ratio

Savings are important to carry households through unexpected financial stress such as being made redundant or unexpected bills. The MoneyHelper recommends you have at least 3 months of expenses saved up. Using data from the ONS, we found that the average household spends £662 per week on expenses like food, housing, transportation, entertainment, etc.

To cover 3 months of spending, the typical UK household should therefore have over £8,000 of savings tucked away. As the savings ratio dips lower and lower, fewer households will find themselves with enough savings.

FAQs

What is the savings ratio?

The savings ratio is the ratio of personal savings to disposable income in an economy - the savings ratio in the UK is 9.5% but varies by region.

Is credit card lending rising?

Yes, credit card lending has been rising steadily in recent years, more than doubling in the ten years from £64,675 million in December 2015 to £73,392 million in December 2025.

• Savings Ratio