The Five Stages of Dealing With Debt

The fives stages of dealing with debt are:

  • Denial;
  • Panic;
  • Self-determination;
  • Frustration;
  • Acceptance

If you want to get straight to step 5 – and start resolving your debts – click the button below:

Getting on top of your finances isn’t something which happens overnight. In fact, it can be a long process taking months or even years. Still, for many people, the journey towards regaining financial control typically follows five key stages. Do any of the below look familiar?

Stage 1: Denial

If people miss the odd payment or don’t quite make ends meet, they’ll frequently convince themselves that what happened was a one-off. Next month, they’ll stress, will be better.

If that prediction turns out to be true, great. However, this typically isn’t the case. Worse, their financial problems will usually get worse the longer the situation is left unchecked.

Sage 2: Panic

When the next month turns out to be no better than the first – and the one after that doesn’t show improvement – the reality of debt may finally start to sink in. The realisation that their finances are not as secure as they thought can be a shock to a lot of people. When this happens, people can react in two different ways. Either, they will skip straight to stage five or go to stage three.

Stage 3: Self-determination

When a problem occurs, many wish to resolve the matter themselves. This is only natural but – sometimes – debts are so big that getting on top of the issue is simply impossible. Regardless, this won’t stop people from trying to repay their creditors through such steps as taking on a second job, cutting back expenses, or rolling out a number of money-saving measures.

For smaller debts, stage three can pay off. However, many now find themselves in stage four.

Stage 4: Frustration

People may experience stage four when all the measures they’ve implemented to regain control of their debts have fallen short. The feeling can be soul-destroying to say the least. Fortunately, after frustration comes acceptance – coming to the conclusion that regaining control of debt is a job which can’t be accomplished alone.

Stage 5: Acceptance

Stage five is where you decide to seek professional help for your debts. There’s nothing unusual about this. In fact, more than 500 people come to us every day seeking debt help. We may recommend a number of debt solutions and one of our most popular is an IVA.

This option writes off large parts of what you owe, freezes interest and charges, stops creditor contact, and leaves you making one affordable monthly payment. To find out if you qualify, click the button below: