Shifting credit habits are reshaping how UK consumers shop and pay.
The UK’s financial landscape is shifting. Short-term borrowing, once associated primarily with younger consumers, is now being embraced more widely across age groups. This change reflects evolving behaviours, economic pressures, and a growing demand for financial flexibility. Recent figures from Age UK reveal that nearly 1 in 5 people aged 50–69, and 1 in 12 over-70s, have increased their use of credit or borrowed more in the past year.
Rising energy costs, inflation, and the broader cost-of-living crisis are prompting many to explore new ways to stay financially resilient. According to Bank of England statistics, unsecured credit use has risen across age groups, reflecting a shift in how UK consumers manage everyday expenses. This marks a departure from previous trends, where borrowing was often approached with caution by certain demographics. Retailers are seeing the impact too, surveys indicate that point-of-sale finance helps customers upgrade to better products and enhances the overall shopping experience.
Credit is increasingly being used not just out of necessity, but as a way to maximise purchasing power and access quality goods. Looking ahead, new regulations for point-of-sale finance products, coming into effect in July 2026 will offer greater protection for consumers, including access to the Financial Ombudsman Service and Section 75 safeguards.
These changes aim to ensure that finance options are transparent, responsible, and safe. For customers, this means more choice and more control. Whether it’s spreading the cost of a purchase or managing monthly budgets, regulated finance solutions are designed to support confident, informed decision-making.
