The average monthly credit card spend has fallen in the UK as cardholders look to deal with the rising cost of living.

According to data published by FICO, the average UK credit card spend totalled £753 in May, a £7 drop compared to April that equates to a 0.9% dip.

FICO suggested its latest data indicates that while cost of living pressures are starting to have an impact, cardholders are also taking a “pragmatic approach” to financial management, with consumers being sensible with spend and payments.

This comes as the FICO data also showed a 6.1% increase in payments to balance in May, for the percentage of payments compared to balance to stand at 42.06% for the month.

FICO’s monthly report for May, which is based on the largest consortium of UK cards data, did also highlight a 7.4% increase in the number of credit card accounts missing one payment.

“In contrast to some of the other consumer spending data, there are no sharp shocks in how UK consumers are using and managing their credit cards,” FICO stated.

“While spend has dipped marginally month-on-month, there are clear signs that the importance of credit cards in handling daily finances is recognised in how repayments are being managed.

“Much like the April data, the signs of the cost-of-living crisis are still limited. Lenders, however, will want to be alert to the early signs of financial distress. The FICO May data shows a 7.4% increase in accounts missing one payment; lenders should track if this pattern — which was already evident in April — continues and the percentage of accounts missing two payments also rises.”

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