The Financial Conduct Authority's Financial Lives 2022 survey found that, among adults who were overdrawn in May 2022 or at some point in the previous 12 months, ownership of retail instalment credit rose significantly between 2020 and 2022, while ownership of credit cards and payday loans fell1. The survey covered 19,145 interviews conducted between 1 February and 6 June 2022, with over 60% completed in May 20221. The findings were published on 26 July 20231.
Across all UK adults, 83% held at least one credit or loan product in May 2022 or had done so at some point in the previous 12 months1. Counting only consumer credit regulated agreements, 78% of adults held one or more such product1. Excluding those who were only transactors, 46% of adults held any consumer credit regulated agreements in 2022, down from 52% in 20201.
Ownership rates for individual products in 2022, with the change from 2020, were as follows1:
| Product | Adults | Change from 2020 |
|---|---|---|
| Credit card | 64% (33.8m) | -2% |
| Overdraft (ie overdrawn) | 20% (10.5m) | -7% |
| Credit card (revolvers) | 17% (9.1m) | -5% |
| Personal loan | 14% (7.2m) | -2% |
| Motor finance | 12% (6.4m) | -1% |
| Store card | 12% (6.3m) | -2% |
| Catalogue credit or shopping accounts | 11% (6.0m) | -2% |
| Retail instalment credit | 10% (5.2m) | 0% |
| Retail hire purchase (excl. rent-to-own) | 3.7% (2.0m) | -0.4% |
| Store card (revolvers) | 3.4% (1.8m) | -0.2% |
| Catalogue credit or shopping accounts (revolvers) | 5.8% (3.1m) | -1.3% |
| Short-term instalment loan | 2.1% (1.1m) | -0.3% |
| Rent-to-own | 1.8% (1.0m) | -0.5% |
| Payday loan (single payment) | 1.2% (0.6m) | -0.7% |
The survey also reported that between 2020 and 2022, overdraft use fell across a wide range of demographic groups1. Deferred payment credit and employer salary advance schemes were added to the 2022 survey1.
"Between 2020 and 2022, overdraft use fell across a wide range of demographic groups"
Why it matters for households
The figures describe how adults who were overdrawn in the year to May 2022 borrowed, compared with 2020. For that group, retail instalment credit, which covers agreements such as point-of-sale finance repaid in instalments, was the product where ownership rose significantly, while credit cards and payday loans became less common. Across all adults, the share holding any consumer credit regulated agreement, excluding transactors, fell from 52% in 2020 to 46% in 20221. Overdraft use itself fell by 7 percentage points to 20% of adults, or 10.5 million people1.
What happens next
The survey results are referred to as 2022, or sometimes May 2022, reflecting fieldwork between 1 February and 6 June 20221. No further publication or update date is given in the findings.
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