Nearly one in four adults lack confidence comparing financial products, Pepper Money finds
New research from Pepper Money shows 24% of UK adults lack confidence when comparing financial products, with younger people, women and lower-income households most affected.
Nearly one in four UK adults say they lack confidence when comparing financial products, according to new research from Pepper Money, highlighting widespread uncertainty around everyday money decisions, from choosing credit options to knowing which debts to prioritise.
The findings from Pepper Money’s Specialist Lending Study point to a growing divide in financial resilience.
Younger adults, women and lower-income households are the least confident navigating financial choices, increasing the risk of poor decision-making or disengagement from mainstream financial services.
The generational gap is pronounced. More than half of 18–24-year-olds, 51%, said they are not confident making financial decisions, compared with 27% of those aged 55 and over.
As younger adults face high living costs, student loan repayments, lower early-career earnings and increasingly complex credit options, many are making decisions with limited confidence and can experience adverse credit outcomes without fully understanding the implications.
A significant gender divide is also evident. Only 58% of women said they feel confident making financial decisions, compared with 72% of men, suggesting millions of women may be at greater risk of making costly mistakes or stepping back from engaging with financial products altogether.
Uncertainty also extends to debt management. Almost one in five adults, 18%, admitted they do not know which debts to prioritise, indicating that financial stress is being compounded by confusion rather than affordability pressures alone.
The study shows strong public support for change, with 83% of UK adults backing the introduction of financial literacy into the national curriculum, reflecting widespread recognition that better education is needed to build long-term financial resilience.
Paul Adams said: “Financial confidence is as important as financial income. We’re seeing that people aren’t just under cost pressures, they’re unsure what decisions to make, which could cause a cycle of money mismanagement.
“When someone doesn’t know which debt to prioritise or the right product to choose, the risk of falling into longer-term difficulty rises.
“Improving access to guidance and specialist support is key to preventing short-term stress turning into lasting financial damage.
“This is where the role of brokers is particularly key to help advise and guide people, particularly those who may be uncertain on the options available to them.”
Regional differences also emerged from the research, showing that confidence is not evenly spread across the UK.
The East of England recorded the highest level of confidence, with 72% of adults saying they feel confident comparing financial products such as mortgages, loans and credit cards.
London, despite being the UK’s financial centre, sits mid-table at 65%, alongside the South East and South West, suggesting higher living costs and financial complexity may be influencing confidence levels.
At the other end of the scale, the East Midlands, North East and West Midlands reported the lowest confidence levels, at 58%, 59% and 61% respectively.
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