Less money, more problems: The five stages of financial debt - Sally W.
Americans owe at least $1.04 trillion in credit card debt. Financial problems such as credit card debt are much more about the money due to its effects to the lives of people. In situations like this, most people would seek only the help of a financial advisor. However, counselors can greatly help individuals with their psychological needs, especially in going through the five stages of financial debt.
Denial
The first reaction to dealing with a problem is to deny that it is happening because it is the common defense mechanism to buffer the weight of the problem. In case of financial issues, you deny the situation by underestimating how much you owe or you don’t open your bills and just leave them in a drawer. Aside from denying the situation, some people would also feel fear and anxiety. According to Anxiety and Depression Association of America, around 40 million Americans suffer from anxiety disorders, and being worried about debts is one of the triggers of such disorders. Even recent college graduates need to keep their finances on track because of their student loan debts. A counselor can help you know certain techniques to manage your anxiety so that it won’t add to your financial problems.
Anger
Individuals in debt are very stressed on so many levels and the only way they could cope with the situation is to get angry. They get mad at their creditors who send them the bills, mad at their bosses for not paying them enough or even firing them, mad at their spouses and children for always needing money to pay the rent or having unplanned expenses, and mad at themselves for getting themselves in the situation. Individuals who can’t manage their anger might be at risk for migraines, heart diseases, and even intermittent explosive disorder. Therapy sessions with a counselor can help you to sort out your emotions and help you realize that while anger is a normal reaction, you need to overcome it so that you can take concrete steps in fixing your financial problems.
Bargaining
When people feel vulnerable, they try to regain control by doing a series of “if only” statements like “if only I did not get that second credit card” or “if only I’d realize my situation earlier.” This is an attempt of the person to bargain with the situation. People also feel a lot of guilt at this stage, especially if they feel they have disappointed their loved ones because of their financial situation. Counselling can help you to stop thinking about “what if” statements and start talking about “what is” the situation.
Depression
After weeks of denying, feeling anxious, and getting mad at everyone, all the negative emotions can pile up which can lead to depression. In fact, mental illnesses such as depression are three times more likely to occur when a person is in debt. In most cases, individuals who are in debt, broke, or unemployed feel hopeless about their situation and have low self-esteem. Seeking counselling help at this point is a given as individuals may be a danger to themselves or to individuals around them.
Acceptance
At some point, the individual will need to accept the situation, and the next step is to take an active role in solving the problem. Look at your debt and try to reduce your monthly expenses. You may need to seek professional assistance from credit counselors to help you sort out your financial situation and a counselor to help you sort out yourself.
Financial problems can spiral out of control and can become the fuel for mental health conditions such as anxiety disorder, intermittent explosive disorder, or depression. The key is to accept the reality of the situation and seek professional help. Professionals can help you be free of financial and mental health problems.
Denial
The first reaction to dealing with a problem is to deny that it is happening because it is the common defense mechanism to buffer the weight of the problem. In case of financial issues, you deny the situation by underestimating how much you owe or you don’t open your bills and just leave them in a drawer. Aside from denying the situation, some people would also feel fear and anxiety. According to Anxiety and Depression Association of America, around 40 million Americans suffer from anxiety disorders, and being worried about debts is one of the triggers of such disorders. Even recent college graduates need to keep their finances on track because of their student loan debts. A counselor can help you know certain techniques to manage your anxiety so that it won’t add to your financial problems.
Anger
Individuals in debt are very stressed on so many levels and the only way they could cope with the situation is to get angry. They get mad at their creditors who send them the bills, mad at their bosses for not paying them enough or even firing them, mad at their spouses and children for always needing money to pay the rent or having unplanned expenses, and mad at themselves for getting themselves in the situation. Individuals who can’t manage their anger might be at risk for migraines, heart diseases, and even intermittent explosive disorder. Therapy sessions with a counselor can help you to sort out your emotions and help you realize that while anger is a normal reaction, you need to overcome it so that you can take concrete steps in fixing your financial problems.
Bargaining
When people feel vulnerable, they try to regain control by doing a series of “if only” statements like “if only I did not get that second credit card” or “if only I’d realize my situation earlier.” This is an attempt of the person to bargain with the situation. People also feel a lot of guilt at this stage, especially if they feel they have disappointed their loved ones because of their financial situation. Counselling can help you to stop thinking about “what if” statements and start talking about “what is” the situation.
Depression
After weeks of denying, feeling anxious, and getting mad at everyone, all the negative emotions can pile up which can lead to depression. In fact, mental illnesses such as depression are three times more likely to occur when a person is in debt. In most cases, individuals who are in debt, broke, or unemployed feel hopeless about their situation and have low self-esteem. Seeking counselling help at this point is a given as individuals may be a danger to themselves or to individuals around them.
Acceptance
At some point, the individual will need to accept the situation, and the next step is to take an active role in solving the problem. Look at your debt and try to reduce your monthly expenses. You may need to seek professional assistance from credit counselors to help you sort out your financial situation and a counselor to help you sort out yourself.
Financial problems can spiral out of control and can become the fuel for mental health conditions such as anxiety disorder, intermittent explosive disorder, or depression. The key is to accept the reality of the situation and seek professional help. Professionals can help you be free of financial and mental health problems.
