UK Debt in 2026: The Numbers Everyone Should Know
From rising credit card balances to record insolvencies, here are the key UK debt statistics that affect millions of households.
TL;DR
Average UK household non-mortgage debt is around £18,400. Credit card rates are at 24.66% APR (30-year high). Over 407,000 people sought debt help from Citizens Advice in 2025, up 44% since 2021. Insolvencies rose 14.7% year-on-year.
UK household debt keeps climbing, and the numbers are worth paying attention to. Whether you're dealing with your own finances or just curious about how widespread the problem is, here's where things stand in 2026.
How much debt does the average UK household have?
The average UK household carries around £18,400 in non-mortgage debt, according to analysis of Bank of England and ONS data. That's roughly double what it was a decade ago. It covers credit cards, personal loans, overdrafts, car finance, and buy-now-pay-later agreements.
Credit cards make up a big chunk of that. Outstanding UK credit card balances hit £73.2 billion by early 2026, up 4.5 per cent year-on-year according to the Bank of England's Money and Credit release.
Interest rates are at their highest in decades
The average credit card interest rate in the UK hit 24.66 per cent APR as of late 2025, per Bank of England data, and has remained elevated into 2026. That's the highest in over 30 years. Carrying a balance has never been this expensive for most borrowers alive today.
To put a number on it: at 24.66 per cent APR, a £3,000 credit card balance racks up roughly £740 per year in interest alone. That's over £60 per month before you even start chipping away at what you owe.
More people are seeking debt help
Citizens Advice helped over 407,000 people with debt problems in the year to 2025, a 44 per cent increase compared with 2021. The average debt among those seeking help rose 36 per cent to £8,900.
StepChange, the UK's largest debt charity, reported that over 170,000 clients completed full debt advice during 2024, with 16,448 new clients completing advice in January 2025 alone.
And here's a number that should bother everyone: Citizens Advice's National Red Index found that around 5 million people in the UK are living in a negative budget, meaning their essential outgoings exceed their income. That includes 1.5 million children.
Insolvencies are rising
There were 33,559 individual insolvencies in England and Wales during Q3 2025, a 14.7 per cent increase compared with the same quarter the previous year, according to House of Commons Library analysis of Insolvency Service data.
Consumer credit continues to grow at roughly 7 per cent per year, outpacing wage growth in many sectors.
What you can do
If these numbers feel like a lot, the best thing you can do is figure out your own situation. Use our Debt-to-Income Calculator to see where you stand, or build a full plan with the Budget Planner. Both are free and your data never leaves your browser.
If you are struggling with debt, free confidential advice is available from StepChange (0800 138 1111), National Debtline (0808 808 4000), and Citizens Advice.
Sources
- Bank of England: Money and Credit statistical release (March 2025, October 2025)
- Citizens Advice: annual debt statistics and National Red Index (2025)
- StepChange: personal debt statistics (2024)
- House of Commons Library: Individual insolvencies briefing (CBP-7584)
- NimbleFins: analysis of ONS and Bank of England data
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This article is for informational purposes only and does not constitute financial advice. For personalised guidance, speak to a qualified financial adviser or contact a free UK debt charity: StepChange (0800 138 1111) or National Debtline (0808 808 4000).