Nearly one in four UK adults (24%) say they lack confidence when comparing financial products, according to research from specialist lender Pepper Money.
The lender said this shows 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 highlight a growing divide in financial resilience, with younger adults, women and lower-income households the least confident navigating financial choices.
The generational gap is stark, with over half (51%) of 18–24-year-olds stating they are not confident making financial decisions, compared to just 27% of those aged 55+.
As younger adults face high living costs, student loan repayments, lower early career-earnings and complex credit options, many are navigating financial choices with limited confidence.
Pepper said this group can unknowingly experience adverse credit without understanding the implications.
A significant gender divide is also evident. Only 58% of women say they feel confident making financial decisions, compared to 72% of men, suggesting millions of women are at greater risk of disengaging from mainstream financial services or making costly mistakes.
Uncertainty extends to debt management. Almost one in five adults (18%) admit they do not know which debts to prioritise, indicating financial stress is being compounded by confusion, not just affordability pressures.
The study also shows strong public appetite for change, with 83% of UK adults supporting the introduction of financial literacy into the national curriculum.
Pepper Money sales director Paul Adams said: “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.”
Money confidence gap widens across UK regions
| Region | % of people who feel confident comparing financial products, such as mortgages, loans and credit cards? |
| East of England | 72% |
| London | 65% |
| South East | 65% |
| South West | 65% |
| North West | 64% |
| Yorkshire & Humberside | 62% |
| West Midlands | 61% |
| North East | 59% |
| East Midlands | 58% |
Regional differences in financial confidence show that uncertainty is not evenly spread across the UK.
While residents in the East of England (72%) report the highest levels of confidence when comparing financial products such as mortgages, loans and credit cards, confidence falls notably in other parts of the country, particularly in the Midlands and North.
London, despite being the UK’s financial centre, sits mid-table at 65%, suggesting that higher living costs and financial complexity may be influencing how secure people feel in their decision-making.
At the other end of the scale, the East Midlands (58%), North East (59%), and West Midlands (61%) report the lowest levels of financial confidence.
This regional confidence gap points to disparities not just in income, but in access to financial knowledge, guidance and support, Pepper said.
