The average spend on credit cards in the UK is continuing to see an increase after averaging £760 in December, a level 14% higher year-on-year.

According to new data published by analytics software provider, FICO, this figure is also £63 more than in pre-pandemic December 2019.

FICO suggested that spend and credit card balances increasing for the Christmas period was “expected”, but warned that with the percentage of payments to balance levelling out and a drop in the numbers of accounts paying the full balance, the data indicates that rising living costs could be starting to take effect.

The average active balance continued its strong upward trend at £1,550 in December, although FICO said it will take several more months of continuous growth to reach the £1,719 average seen in December 2019.

FICO also warned that the picture of missed payments suggests “lenders need to be vigilant”.

According to the analytics firm, missed payments usually peak just after Christmas and start to level out and decrease by spring. However, the latest data shows the percentage of accounts missing one payment increased by 17% between November and December 2021, with a 3.65% increase year-on-year. A similar trend was seen for the percentage of balances with one missed payment.

Accounts missing two payments also increased between November and December, although the figures show that compared to last year there has been a 15% drop in the percentage of accounts missing two payments, as well as a 23% decrease in the percentage of balances with two missed payments.

“Even with the rise of the Omicron variant, FICO data shows that Christmas spending increased in December 2021,” the group said.

“But with higher inflation, and a potential gradual increase in interest rates, this may be too much for some consumers to pay. Over the next few months, lenders will need to continue to monitor and offer appropriate payment options for customers showing signs of financial stress.”

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