Credit card default rates rose again in the three months to the end of August 2026, with lenders expecting further increases before the end of November, according to the Bank of England.
The findings are another warning about the pressure on household finances. If you’re finding it difficult to keep up with credit card payments, there are steps you can take before things get worse.
What has the Bank of England found?
The Bank of England’s latest Credit Conditions Survey, published on 8 October 2026, found that banks and building societies reported rising credit card default rates between June and August.
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A default happens when someone doesn’t repay borrowed money as agreed. It’s generally more serious than missing a single payment.
Lenders also expect credit card default rates to rise further between September and November 2026.
The survey found that defaults on other borrowing, such as personal loans, had also increased. However, lenders expect defaults on these other loans to fall slightly over the following three months.
What do the Bank of England’s figures actually mean?
The Bank of England’s survey recorded a figure of +25.7 for credit card defaults between June and August 2026.
This doesn’t mean 25.7% of credit card customers have defaulted.
Instead, the figure comes from a survey asking banks and building societies whether their default rates have increased or decreased.
Their answers are combined into a score, with bigger lenders given more weight. The Bank calls this a net percentage balance.
A positive score means lenders are reporting rising default rates overall, while a negative score means they are reporting falling rates.
The latest figures show:
- +37.4: March to May 2026.
- +25.7: June to August 2026.
- +23.1: What lenders expect for September to November 2026.
Although the score has fallen from +37.4 to +25.7, it remains positive.
This means lenders are still reporting rising credit card default rates. The figure is lower than in the previous quarter, but it still shows that lenders are reporting rising credit card default rates.
The +23.1 figure is also a prediction from lenders, rather than something that has already happened.
The important thing to know is that these figures show whether default rates are rising or falling. They don’t tell us what percentage of people have defaulted on their credit cards.
What does this mean for household finances?
The findings suggest that repaying credit card debt is becoming more difficult for some borrowers.
For households already stretching their wages across food, housing, energy and other bills, credit card repayments can add another pressure.
This comes as separate research found that the typical non-pensioner household is expected to be around £2,900 a year worse off than previously forecast in 2026–27, following years of rising prices.
It’s particularly concerning if you’re relying on a credit card to cover everyday spending and then struggling to pay it back.
Making only the minimum repayment can also mean paying interest for much longer, leaving less money available in future months.
However, the survey doesn’t mean everyone with a credit card is in trouble.
It doesn’t announce any new credit card charges, repayment rules or interest rate increases.
If you’re managing your repayments comfortably, you don’t need to take any action because of these findings.
But if you’re worried about your next payment, now is a good time to look at your options.
What should you do if you’re struggling with credit card repayments?
There are a few practical steps worth taking.
1. Contact your credit card provider early
Don’t wait until you’ve missed several payments.
If you’re unsure what to say, start by explaining that you’re struggling to afford your repayments. Tell them how much you can realistically pay each month and ask what help they can offer.
Depending on your circumstances, your provider may be able to offer a more affordable repayment arrangement or reduce or freeze interest and charges.
The Financial Conduct Authority (FCA), which regulates financial firms in the UK, has rules requiring lenders to support customers who are struggling or at risk of missing payments.
Ask how any arrangement could affect your credit history and the total amount you’ll repay.
2. Work out what you can realistically afford
Write down your income, essential household bills and debt repayments.
Make sure you know what needs paying and when.
If you can’t afford everything, bills such as rent, mortgage, Council Tax and energy need particular attention because missing these can have more serious consequences than falling behind on a credit card.
Our guide to getting help when you can’t pay your bills explains where to start.
3. Avoid borrowing more just to cover repayments
Using another credit card or loan to pay an existing debt might help briefly, but it can leave you owing even more.
If you’re regularly borrowing money to get through the month, it’s worth getting advice before taking on another repayment.
4. Get free debt advice
You don’t need to wait until your debts become unmanageable.
Free, confidential help is available from organisations including StepChange, National Debtline and MoneyHelper.
They can help you work out which bills to pay first, what you can afford and how to deal with the people you owe money to.
What if you’ve already missed a payment?
Contact your card provider as soon as possible, even if you’ve already fallen behind.
A single missed payment doesn’t automatically mean a formal default will appear on your credit file, which is a record of how you’ve managed borrowing.
However, missed payments can still affect your credit history, and repeated missed payments can lead to more serious problems.
Ask your lender what you owe, whether any charges have been added and what repayment support is available.
If you’re struggling with several debts, a free debt adviser can help you work out a manageable plan.
What happens next?
The Bank of England’s next Credit Conditions Survey is due to be published on 14 January 2027.
That should give a clearer indication of whether credit card default rates continued to rise towards the end of 2026.
If you’re already finding repayments difficult, you don’t need to wait for the next survey. Getting help early could give you more options before your debts grow.
