A recent study by the Personal Finance Research Centre at the University of Bristol, in partnership with StepChange Debt Charity and funded by NatWest Group, has found that young adults in the UK are experiencing financial pressure due to various factors, including unemployment, insecure work, and high housing costs. The research, which analyzed around 71,000 StepChange clients aged 18-34 who received advice in 2025, reveals that many young people are struggling to make ends meet and are seeking human support to manage their debt.
The study found that 44% of StepChange clients aged 18-34 had borrowed to meet rent or mortgage payments in the last three years, indicating a worrying starting point for adult life. Furthermore, 59% of young clients surveyed said their financial difficulties had not yet started when they first used credit, and 75% had first used credit before the age of 21, typically through a credit card or overdraft. These findings highlight the need for trusted debt advice organizations to provide accessible and approachable support to young people.
The research also challenges the idea that there is a typical young person who gets into debt, as participants had diverse experiences and routes through education and work. As a result, lenders, advice organizations, and others offering support must understand these different experiences and listen to what young people find useful. The study found that money guidance websites, online forums, apps, and digital tools were the most highly rated sources of useful information among young clients surveyed.
However, despite being comfortable online, many young people are hesitant to trust AI with their finances. Over a quarter (26%) of young clients surveyed said they would not want to use AI for any financial tasks, such as writing to creditors or getting budgeting advice. In the wider polling, 43% of 18- to 34-year-olds said they would not use AI for any financial tasks, compared with 49% of adults overall. This highlights the importance of human support in debt advice.
The study also found that trust remains essential for young people when seeking debt advice. Evidence that a provider was regulated, advice relevant to someone's circumstances, and clear, understandable language all mattered. Young people want advice that is tailored to their specific situation, rather than generic advice to "stop buying coffee every day." Organizations like StepChange have a clear responsibility to make trusted help easy to find and approachable.
Lenders must also recognize signs of difficulty early, respond with care, and help people access support before debts escalate. However, better information alone cannot close the gap between income and essential costs. Preventing debt also means addressing the pressures around housing, employment, and health that leave young people financially exposed. Young adults deserve the chance to build a future with some financial security.
Vikki Brownridge, the chief executive of StepChange Debt Charity, emphasizes the importance of providing young people with the support they need to manage their debt. By providing accessible and approachable human support, organizations can help young people build a more secure financial future. Ultimately, it is crucial that debt advice organizations, lenders, and policymakers work together to address the root causes of debt and provide young people with the support they need.
Key points
- Young people prefer human support over AI chatbots for debt advice.
- 43% of 18- to 34-year-olds in the UK say they would not use AI for any financial tasks.
- Trusted debt advice organizations have a responsibility to make help easy to find and approachable for young people.
