New findings from a recent survey reveal that highly educated individuals, particularly those with graduate and doctoral degrees, are more likely to miss credit payments compared to their lower-income counterparts. The report, conducted by specialist lender Pepper Money, highlights how rising living costs and significant debt burdens, including tuition fees, may be exacerbating financial difficulties for graduates and higher earners.
Financial Strain Hits High Earners and Young Adults
According to the survey, conducted by Opinium among 4,000 UK residents in September and October 2025, 24% of individuals earning six figures reported missing at least one credit payment in the past year. This figure stands in stark contrast to just 9% of those with annual incomes under £10,000. A significant portion of doctorate holders, 14%, also reported missed payments, with 12% of general graduates in the same boat.
In the younger demographic, financial strain appears more acute. Around 21% of 18 to 24-year-olds indicated that they had missed a payment in the past year, underscoring the challenges faced by young adults navigating both early career hurdles and rising costs. Conversely, only 3% of individuals aged 55 and older reported similar issues.
Paul Adams from Pepper Money pointed out that the growing number of graduates falling behind on payments signals a broader trend of financial insecurity. He noted that while many of these individuals have access to larger credit facilities, their ability to manage this debt has been severely impacted by escalating living costs, unexpected bills, and the financial demands of supporting children into adulthood. “These figures show just how close many households are to credit difficulty,” Adams explained.
The survey suggests that, rather than overspending, many households are simply struggling to cope with multiple rising costs at once. The report points to the persistent pressures of cost of living increases, alongside existing tuition fee debt, which have compounded financial risks even for those who might traditionally be seen as financially secure.
