Twenty-four per cent of UK adults lack confidence when comparing financial products, new research from Pepper Money has indicated.

The specialist lender suggested that there is a growing divide in financial resilience, with younger adults, women and lower-income households the least confident navigating financial choices.

According to Pepper Money’s Specialist Lending Study, over half (51%) of adults aged between 18 and 24 said they are not confident making financial decisions, compared to 27% of those aged over 55. Pepper Money said that many younger adults are navigating financial choices with limited confidence and can unknowingly experience adverse credit without understanding the implications.

The lender also highlighted a significant gender divide, with just 58% of women stating they feel confident making financial decisions compared to 72% of men, suggesting more women are at greater risk of disengaging from mainstream financial services or making costly mistakes.

“Financial confidence is as important as financial income,” sales director at Pepper Money, Paul Adams, commented.

“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.”

Pepper Money’s research also suggested the uncertainty extends to debt management, with 18% of UK adults admitting they don’t know which debts to prioritise, indicating financial stress is being compounded by confusion, not just affordability pressures.

The study, which was based on nationally representative sample of 4,000 UK adults, also indicated a strong public appetite for change with over four in five people (83%) supporting the introduction of financial literacy into the national curriculum.

Adams added: “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.”

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