Understanding young people and debt advice

Mental Health UK and Rethink Mental Illness are working to transform how young adults experiencing debt and financial hardship are supported. With many 18–25-year-olds facing money worries that impact their mental health, this research, funded by the Money and Pensions Service, explores why young people and how debt advice services can better meet their needs.

With the cost-of-living crisis making it increasingly difficult for young adults to establish a secure financial foundation for their lives, young adults are particularly vulnerable to money-related stress. Estimates suggest that nearly a quarter of young people are currently experiencing financial hardship, so there is a pressing need to understand how services can better support them.

“Whenever I spend money, whenever I earn money… I’m thinking about should that go to something else I need.”

Our research – funded by the Money and Pension Service – sought to identify through lived experience insight what changes could be made to make debt advice services more accessible, engaging, and relevant to this vulnerable group, particularly where mental health and financial concerns intersect.

Our expertise

As a mental health charity, we know the emotional and psychological factors driving behaviour with money. Our flagship Mental Health & Money Advice (MHMA) service provides a vital bridge between financial and mental health support, supporting thousands of people each year to improve their financial resilience and wellbeing.

Our Me & Money programme, the only UK-wide programme supporting young people with financial anxiety, goes beyond basic financial literacy to explore the complex, lifelong relationship between money, emotions and mental health. By helping young people understand the underlying beliefs and behaviours that shape their financial lives, Me & Money empowers them to manage money worries before they become entrenched challenges.

Findings

Our research highlights the urgent need to support our young adults with the psychological burden money is placing on them. Many participants described money worries as occupying mental space throughout the day, influencing decisions about spending, work and social participation.

“It’s like waking up with a weight on your shoulders… you just keep worrying about it and you can’t escape it.”

With economic inactivity and youth unemployment on the rise, increasing numbers of young people are at risk of experiencing financial distress.

The research suggests that young people’s experiences of financial stress typically unfold over time rather than emerging as a single moment of crisis. Before engaging with professional advice services, many move through a series of stages in which they recognise financial pressure, attempt to manage it independently, and gradually explore different sources of support.

Recommendations for Debt Advice Services

A series of recommendations for advice services are set out in our report and resources below.

While financial pressures are widespread, the research suggests that low awareness of services, emotional barriers and existing help-seeking habits often delay engagement with professional support. Addressing these factors may help services reach young people earlier and in ways that feel more relevant and accessible.

Downloads

Partnering with Clear Impact Consulting

As a key research partner for our MaPS-funded discovery project, Clear Impact Consulting supported Rethink Mental Illness and Mental Health UK in exploring how young adults (aged 18–25) facing financial hardship engage with free debt advice.

Working closely with our Evidence and Impact team, they brought methodological rigour and specialist expertise to the fast-paced project by:

Leading qualitative fieldwork: Conducting in-depth interviews and co-production workshops to understand how to make debt support more accessible, reassuring, and relevant for young people.
Creating sector-facing resources: Translating insights into practical outputs grounded in lived experience, including youth personas, journey maps, an Engagement Playbook, and an Insight Report.

Their contribution was central to the project’s depth, quality, and focus on shared learning for the debt advice, mental health, and youth support sectors.

Findings

Recommendations for Debt Advice Services

Understanding Young Adults and Debt Advice Report

Engagement Playbook

Journey Maps

Youth Personas

Partnering with Clear Impact Consulting

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