Outstanding balances on credit card accounts have grown by 6.4% per cent over the last year, new UK Finance figures have indicated.

The banking trade body revealed that in the year to May 2025, 47.5% of outstanding balances incurred interest, compared to 48.9% in May 2024.

In total, there were 394.4 million transactions on UK credit cards in May, a figure 3.1% up on the same month last year. The total spend on these credit cards, at £21.8bn, marked a 1.8% rise on last year.

Finance expert at Moneyfacts, Rachel Springall, commented that many borrowers are still incurring interest charges on their credit cards, which she warned can be “hefty”.

“Consumers struggling to get on top of their debts might only be paying the minimum repayment on their card, but this means they could have their debts sitting over them for a long time,” Springall said.

“The volume of online credit card transactions rose 5.3% year-on-year, according to UK Finance. It is understandable that consumers want to use their credit card for online payments, as these can protect shoppers who may be ripped off, as any goods or services not received which are valued over £100 up to £30,000 are covered under section 75 of the Consumer Credit Act.”

As both the value and number of transactions on credit cards rise, Springall also suggested that it is “essential” for consumers to monitor their debts and then adjust their repayments accordingly.

“Making a habit of reviewing a credit report is wise, as any incorrect information may have a negative impact on their score if not corrected,” she added.

“Providers look more favourably on consumers who can prove they are sensible with any debts, but no one is guaranteed to get the top deals.”

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