More than eight million adults are struggling to keep up with credit card repayments, with many relying on plastic to cover everyday household bills, according to new research.
Rising burden
Debt charity StepChange has warned that rising numbers of households are becoming trapped in expensive long-term borrowing as the cost of living continues to pile pressure on family finances. A survey by YouGov for the charity found that 15% of UK adults – the equivalent of more than eight million people – say keeping up with their monthly credit card repayments is either a fairly or very large burden.
Meanwhile, one in 10 adults, or around five million people, admitted using a credit card to pay for essential household costs such as groceries, energy bills, council tax and transport over the past three months. The charity said credit cards were the most common form of borrowing used to cover these everyday expenses.
Defaults at record high
The warning comes as Bank of England figures show credit card defaults reached their highest level since 2009 in the three months to June, underlining the growing pressure on household finances. StepChange is urging the Financial Conduct Authority (FCA) to tighten lending rules, arguing that too many borrowers are becoming trapped in costly debt before regulators step in.
Previous research by the charity found around 2.5 million people are stuck in what is known as persistent credit card debt – where over an 18-month period they have paid more in interest, fees and charges than they have repaid from the original balance.
Persistent debt worsening
The FCA's own Financial Lives survey also suggests the problem is worsening, estimating 2.8 million adults were in persistent credit card debt in 2024, up from 2022. Credit card borrowing is also becoming increasingly common among people seeking debt advice. StepChange said 73% of its clients now have credit card debt, a proportion that has risen this year.
The charity wants the regulator to require tougher affordability checks before lenders issue or increase credit limits, raise minimum monthly repayments to help customers clear debts more quickly, and force lenders to intervene earlier when borrowers show signs of getting trapped.
Charity calls for reform
Peter Tutton, Director of Policy, Research and Public Affairs at StepChange Debt Charity, said: "Millions of people are finding it difficult to keep up with their credit card repayments, while many are increasingly relying on credit to cover essential household costs. This creates a real risk that more people will become trapped in long-term debt.
"People experiencing financial hardship are particularly vulnerable to becoming drawn into harmful long-term credit card debt that reduces their disposable income and compounds cost of living pressures, yet the current rules are not doing enough to protect them.
"Credit cards are often held for many years and people's financial circumstances can change significantly over that time. Someone who could comfortably afford a credit card when they first took it out may later face financial pressures that make repayments much harder to manage.
"Cost of living pressures have intensified since the FCA last reviewed its persistent debt rules, making it more important than ever that the regulatory framework keeps pace with consumers' experiences.
"It's important that the FCA's rules not only mitigate the consequences of harmful lending, but prevent it in the first place, placing clearer expectations on firms to reduce the number of people becoming trapped in persistent credit card debt."
The FCA introduced rules on persistent credit card debt in 2018, requiring lenders to contact customers who have been paying more in interest than reducing their balance over an extended period. However, StepChange argues that intervention comes too late for many borrowers and says reforms are needed to stop people falling into long-term debt in the first place.
The YouGov survey questioned 2,142 UK adults between 9 and 10 July 2026 on behalf of StepChange Debt Charity.
