7 Stages of Credit Card Debt

7 STAGES OF: CREDIT CARD DEBT Start Your Recovery Today GO DAY TM FAST CASH. CLICK AND GO! Stage 1 - DENIAL This is your debt awareness "honeymoon period". Why worry, right? You only bought a new T.V (even though your current one works just fine) and your card has a great interest rate. You'Il pay it off in no time, you tell yourself. love Hmmm. If only it always worked out that way. You're angry you let yourself buy that thíng you didn't need. You're angry that some emergency came up that is going to cost you money. You're angry you didn't set a better budget for yourself. You're angry you're behind on your payment schedule - and that you didn't stick to your budget. Stage 2 - ANGER Stage 3 - DEPRESSION If you're finding yourself in a bit of trouble financially, it's understandable you'd be depressed about it, especially if you have to cut back in other areas or even make dramatic changes. Even though it is understandable, watch for behaviours that can loop you back to the "euphoria" of Stage 1. Don't keep spending to keep the sadness at bay. Stage 4 - BARGAINING This is generally when you want to negotiate unreasonably. But since bargaining is actually a legitimate step in debt management (especially if there are debt collectors involved), make sure you do it right! Don't make promises you can't keep - be reasonable with the collectors (and yourself). Stage 5 - ACCEPTANCE You made it to a truly important step! Congratulations. Hopefully you've realized that the power is all in your hands to climb out of your credit card debt. This is when you're willing to start making the sacrifices, because back at stage 2, you were upset about having to make any at all. You're officially on your way to recovery. Stage 6 - Rebuild Look at that! You stuck to your plan, practiced some serious will power and climbed your way out of your credit card debt. Now, it's the time to rebuild in multiple ways. Rebuild your original budget (so you don't fall into this spiral again). Rebuild your long term financial goals (having something big to look forward to will keep you on track when things are tempting). Rebuild your credit, if you have to. You can do it. Stage 7 - Hope This is the time of growth, both financially & mentally. You won't fall back into the same patterns. You'll stick to your budget. And you'll hope that if temptation rings again, that you'll be ready for it. %24