Fair Isaac Corporation has released its latest UK credit card market report, revealing a challenging financial landscape for consumers. The data indicates a decline in consumer confidence, as spending fell by 4.1% month-on-month and 1.7% year-on-year, averaging £790. Despite this, average active balances have risen by 4.7% compared to the previous year, reaching £1,865, suggesting that consumers are struggling to pay off their credit card debts. The report highlights a worrying trend of consumers increasingly using credit cards to withdraw cash, with a 2.5% rise month-on-month. The percentage of overall balance paid has increased by 4.7% from the previous month to 35.6%, yet it remains 5.8% lower year-on-year. Missed payments have decreased across all delinquency periods year-on-year, pointing to some improvement in payment behavior. However, the average balance on accounts with one missed payment has increased by 2.4% compared to April and 7.2% year-on-year. The average credit limit has seen a slight increase, up 0.2% month-on-month and 2.9% year-on-year, reaching £5,855. These insights are part of the data shared with subscribers of the FICO® Benchmark Reporting Service and reflect the need for lenders to reassess their risk strategies and pre-delinquency measures.