The 7 Stages of Debt – A List

Experiencing the loss of a loved one shares some distinct similarities with encountering a loss financially. However, it must be pointed out that there are two positive stages that have been observed with the latter.

Unlike the former, the last two stages of debt are, for all practical purposes, a happy ending. So, here the 7 stages of debt that one goes through when struggling with financial debt:

#1: Denial

Most people think that a personal financial crisis will not happen to them long before it hits them in the face. Yet when it does, it leaves a mark that you probably won’t forget.

#2: Anger

Anger is a normal reaction to a crisis of this sort but it’s important to realize that getting angry is not the solution to the issue. Channeling that anger into a fiery desire to solve the financial issue is the way to go.

#3: Depression

When you find yourself in debt, this also leads to depression and will also prevent you from working towards a solution. Either you must accept the situation for what it is, get some medical help and then start finding a solution for the problem at hand.

#4: Bargaining

In this step, God or a higher power is brought into the situation, and it must be said that this is nothing but wishing. As for bargaining with debt collectors, ensure that you get agreements made in writing. Wishful thinking won’t get you anywhere.

#5: Acceptance

This is where the healing process begins, and people begin to take a realistic look at their lives and are willing to take steps in a new direction, regardless of the current situation you find yourself in. You begin to accept things for what they are – and take steps to adjust accordingly.

#6: Resurrection

After a while, you should be able to find a solution to your financial issues, and if done right, get back on your feet again – to not only pay off your debts but also resurrecting your credit rating.

#7: Rebirth

There will come a time when you will recognize that the experience of dealing with these financial issues has made you a better and stronger person.