Emotional Effects Of Denial Of Debt And Ways To Cope

There are different opinions of debt among people. Some think that it is unnecessary burden and avoid having debt entirely while there are others who think that debts are like necessary evils which enable to enjoy life’s certain qualities. Most of the people fall into the second category and in most of the people’s cases; debt gets out of their hands in the later stages. So, if you want to avoid this pitfall, there are certain things you must consider. You must know your limitation; manage purchases with moderation so that you can pay off your debt in a short time effectively, resulting in emotional stress.

Recognize Emotional Signs

When you make new purchase on credit and pay only the minimum amount regularly, you tend to feel that everything is under control. But it is not so, Even though your creditors are not bothering you, that does not mean you are in the clear. You may be in the mode of denial when your family suggests reign in expenses and you make excuses. It is a defense mechanism wherein you do not have to acknowledge your mistake if you do not accept reality. However, the problem is not fixed even if your emotion is protecting your ego.

Signs Of Denial

Denial worsens the situation. It results in additional debt and your expenses eclipse your income. It leads you into a situation where you can lose everything, money, happiness, sleep and all. If you see these signs then you can be sure that you are in denial. You will see bills are left unopened. You will also underestimate the amount that you owe. When you console yourself by saying that everyone is in the same position and believe it, you are in serious denial mode. Also if you start to rationalize your impulsive purchases saying that you only live once, then you are in denial.

Overcome Your Denial

The first thing you must do is to overcome your denial by stopping your unsuccessful attempts to try and save your face. It is to your own belief and you know it very well yourself that underneath all your wrongful justifications, you are in debt. So, the best way to start is to move ahead, stop making any excuses and be honest to acknowledge your past mistakes. Admit to the signs of maxed out unpaid accounts, late payments of bills and high outstanding balance in your credit card and start making plans to overcome it at the earliest. You can consolidate credit cards loan and start making payments one by one.

Confront And Make Amends

Open all the unopened bills; make a note of the entire outstanding bills, the rate of interest and the due dates. Even if the amount that you turn upto is very uncomforting, running away will surely not help. Coming face to face with it and confronting could be the necessary step for effective amendments. Next, find the real issue of your spending problem and curb it. It is better the sooner it is done so that you can recover from your debt at the earliest.