It appears debt problems could well be made worse by Brits underestimating the cost of life's big events.
New research from HSBC shows that UK consumers underestimate this figure by an average of £124,000.
That's because Britons are said to be underestimating the cost of such unavoidable and important events as weddings, funding offspring through university and having a child.
The study also shows that because of this, people expect to wait longer to achieve the key milestones in life – possibly to give them longer to deal with their debt problems.
HSBC says that on average life's big events cost £314,000 however Britons estimate the cost will be just £190,000 – which makes the shortfall equal to £124,000.
Head of Savings for HSBC, Richard Brown says: "Life's big events can be expensive and many who are yet to undergo them are significantly underestimating the costs involved."
He goes on to say that people may have to such key milestones unless they fully understand the implications and start planning their finances earlier.
Director of Atlantic financial Management Kevin Still says, "It's our experience that any unplanned financial expenditure shock can upset delicately balanced household budgets where there is limited disposable income.
Unexpected car and home repairs are a common problem, as are the dual impact of loss of income and additional dependents when having a baby.
Debt solutions like a Debt Management Plan can be effective to deal with both long-term debt problems and transitional periods to provide some debt relief whilst household finances are brought back under control."
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