According to the report, UK credit card debt reached £79.2 billion in 2025. Equifax said consumers were making greater use of interest-free periods and adjusting spending, while second-hand buying and selling had become more common. It estimated the annual re-commerce market at £7 billion, with nearly four million UK adults buying second-hand goods each month and more than two million selling items to support income.
Equifax said one in three consumers would want £20,000 in the bank to feel more financially secure, while average savings stood at £6,188. Its Market Pulse Index, a measure of consumer financial resilience, stood at 60.4, above the 2019 level but below the stimulus-driven peak in 2021. The company said this pointed to a reduction in savings built up during the pandemic.
The analysis also found that the average unpaid utility bill remained at £600 during 2025, compared with £350 in 2020. Equifax said recent global events could contribute to a 20% increase in the July 2026 Ofgem price cap, taking the typical annual dual-fuel bill to about £1,973.
Borrowers also face the prospect of interest rates staying elevated for longer. According to the report, almost 300,000 mortgage borrowers had moved to interest-only deals or lengthened their mortgage terms between July 2023 and October 2025 as a way to manage payments.
| 2025 Market Pulse Index (MPI) score by generation | |||
|---|---|---|---|
| Generation | 2025 MPI score | vs 2019 baseline | vs 2021 peak |
| Baby boomers | 67.88 | +2.88 | +0.48 |
| Gen X | 61.68 | +2.83 | -0.21 |
| Millennial | 56.11 | +2.10 | -1.30 |
| Gen Z | 50.84 | +3.63 | -0.29 |
| Source: Equifax | |||
“The UK consumer’s ‘Great Recalibration’ in 2025 was a triumph of adaptive resilience, but we could now be at a turning point,” said Paul Heywood, chief data and analytics officer at Equifax UK.
