A credit card is supposed to give you flexibility.
It can cover a purchase, protect a transaction and help manage cash flow when the balance is cleared responsibly.
But when the card starts paying for food, energy and fuel because the household income is no longer enough, it stops being a convenience.
It becomes a warning.
New research highlighted by StepChange suggests around 5 million UK adults have recently used a credit card to cover essential bills. Around 8 million say keeping up with repayments is a large burden every month.
This is not people borrowing for a luxury watch they could not afford. It is people putting ordinary life on plastic.
Credit card debt is becoming more common among people seeking help
Credit cards have always been one of the most common debts seen by StepChange.
What has changed is the proportion of the charity’s clients carrying them.
StepChange says credit card debt is now held by 73% of its clients, up from 67% a year earlier.
That does not mean 73% of every UK adult is in credit card debt. StepChange clients are people already seeking debt support, so the group is not representative of the whole population.
It does show that among financially distressed households, credit card borrowing is becoming even more prominent.
| StepChange and YouGov finding | Reported figure |
|---|---|
| StepChange clients holding credit card debt | 73% |
| Equivalent figure a year earlier | 67% |
| UK adults recently using cards for essentials | Around 5 million |
| UK adults finding monthly repayments a large burden | Around 8 million |
The problem often starts with something ordinary
Most debt spirals do not begin with one spectacularly reckless purchase.
They begin with a broken boiler, a period out of work, a relationship ending, a car repair or a month when several bills arrive together.
The card covers the gap. The borrower makes the payment. Life continues.
Then another gap appears before the first balance is cleared.
Credit cards are revolving agreements. They can remain open for years, even when the borrower’s circumstances are completely different from when the account was approved.
Someone who could comfortably afford the borrowing at the start may later face lower income, higher rent, illness or childcare costs. The product stays the same while the person’s financial life changes around it.
The danger is not always one large purchase. It is a temporary financial gap quietly becoming a permanent monthly payment.
Minimum repayments can create the illusion of control
A minimum payment keeps the account from immediately falling into arrears. It does not mean the debt is being cleared quickly.
When the payment is low and the interest rate is high, a large part of the money can disappear into interest rather than reducing the balance.
Imagine a £3,000 balance at an illustrative 24.9% annual rate. The exact repayment depends on the card’s terms, future spending and how its minimum is calculated.
What matters is the direction. Paying only a small percentage allows interest to keep working against you, while paying a fixed amount above the minimum can reduce both the time and total cost.
| Repayment behaviour | Likely effect |
|---|---|
| Only paying the minimum | Debt may reduce very slowly as interest absorbs much of the payment |
| Continuing to spend while repaying | The balance can remain flat or keep growing |
| Paying a fixed amount above the minimum | More of the balance can be cleared sooner |
| Using a genuine 0% balance-transfer period | Interest can pause, but fees and the end date matter |
| Missing payments | Fees, credit-file damage and loss of promotional rates may follow |
A 0% balance-transfer card can help some borrowers, but only if they qualify, understand the transfer fee and have a realistic plan to clear the balance before the promotional period ends.
Moving debt is not the same as repaying it.
Using credit for essentials is a different kind of warning
Buying groceries on a card is not automatically irresponsible. Some people use a rewards card and clear it in full every month.
The warning appears when the card is needed because there is no cash available and the balance cannot be cleared when the statement arrives.
Food, energy and fuel return every month. Borrowing does not remove those costs. It adds interest to them and leaves next month’s income carrying part of last month’s life.
That is why repeated essential spending on credit deserves attention early. The problem is not the supermarket transaction. It is the structural gap between income and unavoidable expenditure.
The wider cost-of-living pressure has not disappeared
Lower inflation does not mean prices returned to where they were.
It means prices are rising more slowly than during the worst part of the inflation shock. Households are still paying from a much higher starting point for food, energy, housing and transport.
The House of Commons Library reported that debt charities StepChange and Citizens Advice both saw record numbers of debt clients in March 2026.
ONS survey evidence also showed that among adults experiencing a higher cost of living in May 2026, 15% said they were using more credit than usual.
That does not prove every increase in card borrowing is caused by essentials. It supports the wider picture of household budgets still under pressure.
What to do before the balance becomes unmanageable
Start by stopping new spending on the card if doing so will not leave you without essentials.
Write down every balance, interest rate, minimum payment and promotional end date. Check whether you are paying for subscriptions or recurring charges you no longer use.
Protect priority bills first. Housing, council tax, energy and essential living costs can carry more serious consequences than unsecured credit card debt.
Contact the lender before missing payments. Creditors may be able to discuss temporary support, repayment arrangements or breathing space depending on the circumstances.
Do not borrow from one expensive source simply to make another lender look current. That can hide the problem while increasing the total debt.
| First step | Why it matters |
|---|---|
| List every debt and interest rate | Shows the full position instead of treating each card separately |
| Protect priority bills | Housing, energy and council tax can have more serious consequences |
| Stop unnecessary new card spending | Prevents repayment progress being cancelled by fresh borrowing |
| Contact creditors early | More support options may exist before accounts fall further behind |
| Use free debt advice | Creates a plan based on the whole household budget |
Free debt advice exists for a reason
If repayments are unaffordable, this is no longer a credit-card optimisation problem.
It is a debt-advice problem.
StepChange, National Debtline and Citizens Advice provide free support. A regulated debt adviser can review the full budget, explain available options and help deal with creditors.
Avoid companies charging large upfront fees for solutions that may be available through free charities.
Debt is easier to address before the unopened letters, missed payments and shame start making every decision harder.
This is bigger than personal discipline
Individual choices matter. Budgeting matters. Interest rates matter. Borrowing more than you can repay carries consequences.
But when millions of people report using credit for food, fuel and energy, the answer cannot simply be that millions of people suddenly forgot how money works.
Credit cards are increasingly absorbing the difference between what essential life costs and what some households earn.
That may keep the lights on today. It does not fix the income gap.
When essentials need to be borrowed, the debt is not the beginning of the problem. It is evidence that the problem has already arrived.
Related reading
Watch the full video
For a deeper breakdown of credit cards, debt and the financial pressure facing UK households, watch The Anxious Investor below.
Sources and further reading
- Big Issue: More Britons are taking on credit card debt to deal with the cost of living
- House of Commons Library: Household debt statistics and economic impact
- StepChange: Dealing with debt problems
- National Debtline: Free debt advice and support
- Citizens Advice: Debt and money
Written by Aren Deu | The Anxious Investor
Leave a Reply