Seven Stages of Debt
- Denial — “I don’t have any money problems but I need help.”
- Anger — “I’m a victim. My creditors did this to me.”
- Depression — “My situation is hopeless. What am I going to do?”
- Bargaining — “Give me a debt consolidation loan and I’ll never get in trouble again.”
- Acceptance — “I am responsible for my actions and will do whatever it takes to solve my problem.”
- Resurrection — “I’m ready to be financially successful again. Take me by the hand and lead the way.”
- Rebirth — “I’m ready for an even better financial life.”
Steps toward your new financial life
- Determine “where you are”
- Set financial goals
- Establish a budget that is within your means/Includes “freedom” account
- Major changes in lifestyle may be necessary — here is when we begin to implement these changes
- Establish a minimal contingency fund
- Work toward paying off debts/small celebration after each one
- Work toward a true contingency fund (6 months of salary)/Begin retirement savings plan
- Annually – review and set new financial goals
