Quick summary: A major survey of over 2000 UK credit card holders reveals that 83% turn to unregulated sources such as AI tools and social media for financial advice on topics from credit cards to pensions, with younger adults showing even higher reliance at over 90%. This leaves millions exposed to poor guidance that has already cost many hundreds of pounds each in the past year, fuelling financial losses that heighten stress and undermine mental wellbeing for those navigating rising living costs. Readers and policymakers should prioritise verified regulated advice to protect personal stability and reduce broader pressures on healthcare and public support systems.
New research has highlighted growing concerns over the sources of financial guidance used by UK consumers, as many turn to social media, online forums and artificial intelligence tools amid rising living costs. The study by credit card provider Zable surveyed 2,001 UK credit card holders and found that 83% seek financial guidance from non-regulated sources across both everyday money matters and more complex decisions.
Reliance on unregulated sources spans a wide range of topics. Salary and wages top the list at 54%, followed by savings at 49%, insurance, monthly budgeting and pensions at 48%, and credit cards at 46%. Even for investing, 45% turn to unregulated advice, while 43% do so for financial planning and 36% for mortgages.
Younger adults show particularly strong dependence on such sources. Some 93% of 25 to 34 year olds and 92% of 35 to 44 year olds reported seeking non-regulated guidance. For credit cards, 63% of 25 to 34 year olds turned to unregulated advice in the last 12 months, while 60% of 35 to 44 year olds did so for pensions. Among Gen Z, 81% lack confidence in managing finances and only 12% use government websites for tax guidance, while 30% turn to social media.
AI tools fall short on UK-specific advice
Around one in 10 credit card holders already use AI for financial guidance, rising to one in six among 25–34 year olds. Zable tested four major platforms: Gemini, Grok, ChatGPT and Claude, assessing each against nine common personal finance questions on topics including financial planning, investing and insurance.
Emily Tye, senior content manager at Zable, found that most tools defaulted to US-focused advice, referencing items such as 401(k)s and FDIC insurance. Claude achieved the highest score with six passes, though some included outdated UK details. ChatGPT secured two passes and Gemini three. Grok did not pass on any question. The assessment concluded that while AI offers a useful starting point, UK consumers should verify information independently.
Almost a third (29%) of credit card holders, equivalent to over 10 million people, reported losses from poor credit card advice in the past 12 months, with 21% losing £100 or more. For investing, 28% reported losses, most commonly in the £100 to £500 range. Mortgage-related losses often fell in the £500 to £1,000 bracket. Among Gen Z, nearly one in 10 reported losses between £2,500 and £4,999.99 from poor advice, the highest rate across all age groups.
Despite this, many skip basic checks before acting on guidance. Over two thirds (68%) of Brits do not check risks before following financial advice, and the same proportion would not compare it against sources such as government websites. Only 24% check a professional’s credentials, and just 22% investigate potential conflicts such as commissions or sponsorships. Additionally, 72% do not fully read terms and conditions before acting.
Arielle Rogers-Jenkins, senior product manager for UK credit cards at Zable, recommended that consumers prioritise regulated professionals and official platforms for taxes, pensions and borrowing, and verify any adviser’s authorisation via the Financial Conduct Authority Register. For free guidance, she pointed to MoneyHelper for budgeting, debt and pensions; Which? for independent product and scam guidance; and Citizens Advice for debt, benefits and rights. She also advised treating AI tools, forums and social media as an educational starting point rather than a final answer, and cross-checking key details with regulated sources.