According to new research, one in five (21%) Brits[1] have had a relationship breakdown due to financial misunderstandings, and 14% have even resulted in divorce.

The new nationwide study from credit management company Lowell determines the detrimental effects misunderstanding a money term has had on relationships across the UK, and the key commonly-used financial terms that are misunderstood the most, such as equity when buying a home together, joint accounts and more.

In fact, their data shows that not discussing debt is the main source of money problems for 13% of Brits and a third (33%) said their finance issues were caused from borrowing from a family member or loved one.

Lowell has uncovered the impacts of money problems on relationships and health below, with the aim to help people feel more comfortable discussing debt with their partners whilst fully understanding money jargon in the process.

What personal difficulties are being faced because of money problems brought on by financial misunderstandings?

Almost half (41%) have lost sleep due to stress, 21% have split up with their partners and 14% have even gone through a divorce, which will add even more financial strain as the application alone is £593[2], and the average total cost is around £14,561[3]. Further health issues include weight loss (14%), alcohol or substance abuse (11%) and mental health problems (21%) too.