4 min read

The Five Stages of Dealing With Debt

Dealing with debt can be stressful for anyone, and many of us struggle when we find ourselves having money problems. So, what are the five stages of dealing with debt?

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

If you want to get straight to accepting your debts and looking to the future – click the button below:

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A person sitting on a chair, thinking about money, looking through their phone as messages come through.

Let’s have a look at these stages in more detail:

01: Denial

We’ve all done it, spent more than we should. Whether it’s on a night out, on food, it’s the small things that add up. It’s comfortable to turn a blind eye,

“if I don’t check my bank balance then I can’t see how bad the situation is”.

In this situation, we usually persuade ourselves that next month will be different and this month was just a blip.

If you’re right, great, no harm done! One month of overspending is easily rectifiable.

However, in many cases, the situation gets worse the longer it’s left unchecked, and this is how debts start to mount.

02: Panic

It’s next month and things aren’t better. Here’s where realisation sets in.

Maybe at first things aren’t that bad. But as the months roll on, it can get out of control. With bills mounting up, creditors demanding payment, and interest climbing, most people will start to panic.

“How will I ever pay this money back?”

Now we have two options. Either we can accept our situation straight away or we can move onto stage 3 and attempt to deal with the situation alone.

03: Self-determination

Money is a very private matter and often this means many people try to 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 are just buying you time, and eventually, you will have to take more affirmative action.

04: 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. It can be very frustrating and lead to problems with your mental health, and with the people around you. Often, we isolate ourselves in situations like these, and if you’re struggling emotionally, you should always speak to someone. Don’t suffer alone.

Luckily, this is the point where most people realise something must be done. The only way now is forward.

05: Acceptance

Don’t struggle with debts alone. Often people don’t know this but there are many options out there when dealing with debt. Specialist debt companies are on-hand to help you deal with paying back what you owe.

One great option when dealing with debt from multiple creditors may be an IVA – a solution that can mean some of your unsecured debt is written off, stops creditors chasing you for payment and means you will make just one affordable payment each month.

If this sounds like something that could benefit you and your situation, click the button below:

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