Debt Managements 8 Stages of Grief

Depressed because you're in debt? If so, my condolences.

I know that you're going through a lot of stress right now. I also know that you can manage your debt, settle and eventually defeat it. But for best results it's critical that you understand the "7 Stages of Debt Grief".

1. Debt Shock and Denial:

Be aware that the first Stage of Debt Grief are Shock and Denial. They come in 2 mini-stages.

A.) Shock and B.) Denial.

For example, you may be in Shock if you don't know what your total Outstanding Balances are. How did you respond, when you discovered that you were neck deep in debt? If you don't know, or haven't responded you may be in shock.

Debt Shock is an extreme reaction to a stressful financial situation. Shock is usually the result of an unexpected event. When a Consumer is in Debt Shock they are usually numb to the facts (i.e. the amount of outstanding debt they owe).

Are You in Debt Denial?

Many people are going through Debt Denial right now. It's normal, understandable and part two of the first stage of Debt Shock and Denial. How can you tell if you're in denial of your debt? Ask yourself, "how much debt do I currently have?" If you're unmotivated to check and see, you may be in Debt Denial.

It's normal to be shocked by your debt or to dwell in denial for a while. Eventually you will move to the next Stage of Debt Grief.

2. Guilt and Shame:

Many of my clients come to me in this stage. They feel guilty and shameful about their financial situation. They ask themselves "how could I be so stupid". Or in my ex-wife's case, simply not tell anyone. The fastest way out of the Stage of Guilt and Shame is to take accountability and action. Just admit your financial mistakes and move on to the 3rd Stage of Debt Grief.

3. Bargaining:

Many of my Clients come to me intending to strike a bargain with their Creditors. For them, the frustration is too much. At the Bankruptcy Prevention Law Firm, a majority of the clients simply wanted the calls to stop, others wanted to get the best deal possible. Many people try (on their own) to work out a deal (Debt Settlement) in vain.

Mrs. Dennis, a wonderful 67 year old Woman was a client of mine at the Law Firm. She was a good person who recently lost her husband of 30 years. Mrs. Dennis called to bargain with her Credit Card Companies to offer a Debt Settlement and she was rudely shot down. The Credit Card Collections Department treated her like a Criminal. So she gave up and retained the Law Firm where I was Legal Assistant at. When I called to introduce myself to Mrs. Dennis she was in the 4th Stage of Debt Grief.

4. Anger:

Mrs. Dennis was angry that she tried to work something out with her Credit Card Companies. She was trying to be responsible, but the Credit Card Company said there was nothing they could do for her. Her Husband was a good customer for over 20 years. I felt Mrs. Dennis had the right to be angry. Corporate Greed in general makes me angry. But Mrs. Dennis had a valid reason to be angry. When I spoke to Mrs. Dennis, she was in the 5th Stage of Debt Grief.

5. Depression:

I would define a Debtor in Depression as stuck in bad mood. Massive amounts of debt can make you feel like you're stuck in a emotional black whole. This is a normal feeling. Dopamine plays a role in Debt Depression. If you're in Debt Depression, talk to someone who understands what you're going through.

A trusted Financial Adviser can give you an emotional hand up out of the emotional black whole. I can get you out of a financial black whole, so you can move to the 6th Stage of Debt Grief.

6. Acceptance:

In this Stage, you see that debt is a trap. You've become more educated about your Finances. You face the realities of inaction and resolve to take action. This could be browsing the web for advice, asking a friend for referrals or any number of things. Once you've accepted your financial situation, you can then move to the 7th Stage of Debt Grief.


7. Determination:

Here's where the work begins and starts to pay off. You've admitted and learned from your mistakes. You've lived through the threats and stress related to your debt and you're still here. If you're in this Stage Congratulations! Once you hit the Determination Stage, you can seek proven solutions to defeat your debt.

While in this Stage you walk with your head held high. You start discussing your Financial Situation with your loved ones more openly. You are no longer in Debt Denial. You've moved through the shame anger and depression and you're determined to get out of debt. If you're already here, let's move on to the 7th Stage.

8. Victory:

At this point, you're no longer in Shock. You've overcome Denial, Guilt and or Shame. You've tried to Bargain but may have become Angry which led to feelings of Depression. You may be considering a Debt Management Course because you've Accepted the realities of doing nothing.

Now you can feel confident knowing that winning your WAR On DEBT is a reality.



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DEBT WARRIORS™ are not Attorneys. WE ARE experienced Debt Management Coaches. The information on this blog, should not be considered legal advice, but helpful information. If you need to retain a Top Rated Attorney for less than the cost of a tank of gas click here:

Don't let debt defeat you! Win Your War ON DEBT!

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