The researchers questioned 5,000 adults in England and Wales about so-called "civil-law problems" for which a remedy could be sought in court, including consumer disputes, employment issues, homelessness, domestic violence, disputes over benefits, child custody, immigration or mental health, and accidents where someone was to blame.
It showed 34 per cent of people said they had suffered at least one such problem.
Almost 16 per cent of the problems identified led to physical ill health, while 27 per cent were said to have fell for stress-related conditions.
As many as three million adults across the UK had problems with debt or disputed bills.
Out of which, 21 per cent said they had suffered stress-related ill health.
Among those whose debts caused ill health, 22 per cent saw their GP, costing the NHS an average of £125 per patient.
The study was carried out by the Legal Services Research Centre, an arm of the Legal Services Commission, which oversees Britain's £1 billion-a-year legal aid budget.
The financial woes have cost to the NHS of 15 million pounds to 20 million pounds,
"This figure would more than double were problems concerning housing added, such as having mortgage or rent arrears," the Telegraph quoted Dr Nigel Balmer, a co-author of the study and the principal researcher.
"Many of these problems are likely to increase in volume and severity if economic conditions deteriorate, but further co-ordination of health and advice services could help to address complex problems more efficiently, he added.
The report concluded: "Associations have been found between ill health and poor and overcrowded housing, homelessness, debt, discrimination and problems with employment."