One in four adults lack confidence comparing financial products

New research from Pepper Money has revealed that 24% of UK adults say they lack confidence when comparing financial products, 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 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 also prominent, 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.

Furthermore, only 58% of women say they feel confident making financial decisions, compared to 72% of men.

Regional differences in financial confidence show that uncertainty is not evenly spread across the UK. Residents in the East of England (72%) report the highest levels of confidence when comparing financial products such as mortgages, loans and credit cards.

Despite being the UK’s financial centre, London 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.

The study also shows that 83% of UK adults support the introduction of financial literacy into the national curriculum, signalling widespread demand for more education when it comes to managing finances.

"Financial confidence is as important as financial income," said Paul Adams, sales director at Pepper Money. "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."