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:

Dealing with debt isn’t something which happens overnight and, often, people will go through a journey similar to the ‘five stages of grief’. Do any of the below stages sound familiar?

Stage 1: Denial

When checking their bank balance and seeing they’ve overspent this month – or some bills weren’t paid – people often turn a blind eye. In this situation, individuals usually persuade themselves that next month will be different and whatever happened to their finances was just a blip.

If they’re right, great, no harm done. However, in the vast majority of cases, the situation gets worse the longer it’s left unchecked.

Stage 2: Panic

Here’s where realisation steps in. With bills mounting up, creditors demanding payment, and interest climbing, most people will panic about their financial situation. Two choices now present themselves. Either, we can skip straight to step 5 or struggle through two additional steps.

Stage 3: Self-determination

Money is a very private matter and, as a result, many take the view that they should resolve debts themselves. This may include striving to bring in more income through a second job, cutting back expenses, or any number of money-saving initiatives. However, for large amounts of debt, these measures just won’t help.

Stage 4: Frustration

By this stage, it’s common for people to have tried every conceivable measure to get back on top of their finances – and each one has failed. Make no mistake, it’s soul-crushing. Their debts are now a huge problem, creditor calls occur frequently, and there’s probably now the threat of bailiff action. Fortunately, most now arrive at step 5: acceptance.

Stage 5: Acceptance

It’s here that people realise they can’t deal with their debts alone. In this situation, they’ll usually seek support from a specialist debt solution company – such as us. More than 500 people come to us every day seeking support with their finances and we’re always happy to listen.

Many of those we support wish to find out more information about an IVA – a solution which can write off debt, stop creditor harassment, and leave people making just one affordable payment each month.

To find out if you qualify for this option, click the button below:

Further reading

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