Credit card defaults rose in the three months ending in August, according to a recent survey by the Bank of England of lenders including banks and building societies. The survey also indicates that these defaults are expected to continue increasing through the three months ending in November.

Adam Butler, public policy manager at the debt advice charity StepChange, attributed the rising defaults to ongoing financial pressures faced by households across the United Kingdom. He pointed to successive waves of inflation as a key factor contributing to the increased financial strain. Butler highlighted that the coming winter is likely to bring further challenges, with anticipated energy price hikes, rising interest rates, and consumer prices continuing to exceed the Bank of England’s inflation target.

Butler warned that these economic pressures are expected to result in higher demand for debt advice and support services. He noted that StepChange has already experienced a 20 percent increase in client demand this year, a trend that the charity expects to continue as more households struggle to manage their debts amid the worsening economic environment.