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