Chapter 05 · Confidence and savings
Financial difficulty is not only experienced through balances, arrears and credit scores. Participants also described its effect on their mental health, relationships and sense of self-worth.
In 2026, Loqbox commissioned Censuswide to survey 2,001 UK Gen Z adults as part of a campaign with Citizens Advice. Almost two thirds (65%) said money worries were affecting their mental health, including by increasing stress and disrupting sleep.1
Research published by the Money and Mental Health Policy Institute has also identified stigma as an important part of the psychological harm associated with financial difficulty. People in arrears may internalise the idea that their situation reflects irresponsibility or personal failure. This can discourage them from seeking support, allowing both their financial and mental health difficulties to become more severe.2
1 Censuswide, survey of 2,001 UK Gen Z adults, commissioned by Loqbox as part of a campaign supporting Citizens Advice (2026).
This pattern was reflected in our interviews. Participants described feeling anxious and overwhelmed, but also embarrassed about confiding in family and friends or asking them for help.
“
It felt like someone was holding me in a chokehold because I owed this amount of money. So I was having panic attacks and anxiety about “Okay, where will I pay? How will I pay?”
Daisy
Impact Report Contributor (Internal Case Study, 2026)
“
It was embarrassing, being in your late 40s and not having any money when I’m in a job that pays really well.
Lee
Impact Report Contributor (Internal Case Study, 2026)
Financial difficulty could also lead to social isolation. Some participants withdrew from friends because they could not afford to take part in the same activities. Others compared themselves with people of a similar age who appeared to be progressing towards milestones such as stable employment and home ownership.
“It does make you feel secluded. I couldn’t afford to go out with my friends, I couldn’t afford to keep up with them so there was a lot of social exclusion.”
— Amy, Impact Report Contributor (Internal Case Study, 2026)
These experiences show why confidence and emotional wellbeing matter to financial inclusion. A person may have access to information or support, but shame and anxiety can prevent them from engaging with it. Rebuilding therefore involves more than improving a credit profile: it can also mean feeling able to look at the problem, talk about money and begin making plans again.
Participants described changes in how they thought about and managed money. These included becoming more conscious of spending, planning ahead, saving regularly and discussing financial difficulties more openly.
“
I took control. Debt felt like a runaway train that I had no control over. I took control at my lowest point, learned new behaviours with money, and now have attainable goals like buying a house. I’m a year away from paying off my debt management plan and being completely debt-free, which I never thought I’d do in my adulthood.
Lee
Impact Report Contributor (Internal Case Study, 2026)
These challenges extend beyond the members we interviewed. The FCA’s Financial Lives 2024 survey found that 6.5 million UK adults had low financial capability and that 22% lacked confidence in managing their money.3
Loqbox’s own member research also indicates positive changes in confidence and capability. Among surveyed members who had used Loqbox for at least three months:
47%
said they felt more confident about their finances
Among surveyed members who had used Loqbox for at least three months⁴
45%
said they knew more about the financial system
Among surveyed members who had used Loqbox for at least three months⁴
53%
said they were managing their money better
Among surveyed members who had used Loqbox for at least three months⁴
50%
said they had built better financial habits
Among surveyed members who had used Loqbox for at least three months⁴
These are self-reported outcomes and should not be interpreted as evidence that Loqbox alone caused every change. They do, however, indicate that many members associate their experience with improvements in how they understand and manage their finances.
3 Financial Conduct Authority (2024) Financial Lives 2024 survey: Credit & loans.
4 Loqbox member survey (2026). Base: members with a tenure of at least three months (n=406).
Chapter 01
Chapter 02
Chapter 03
Chapter 04
Chapter 05
Chapter 06
Loqbox Impact Report 2026
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