I’m In Debt Denial: What Do I Do?

It isn’t easy to pull yourself out of debt denial, but it’s an incredibly worthwhile step.

Once you’ve made the decision to claw back control of your finances, here are some tips on what to do next:

1. Face the facts!  If you have a pile of bills, bank statements or even demands from debt collection agencies, the first thing you must do is open them.

By the time you’ve finished, you should know:

how much you owe, and to whom,  how much interest you’re paying on each debt; what your monthly minimum repayments are.

2. Budget better. Using a Statement Of Affairs calculator will provide you with a clear idea of how much money you have coming in and going out each month.

The next step is to make an action plan, cutting costs where you can and putting the pounds you save towards demolishing your debts.

3. Travel back in time. If we could really go back in time, I’m sure most of us would like to think we’d never get into debt in the first place. However, not even a time machine can save you from debt problems if you haven’t addressed the real reasons why those problems arose. Try to look at your past spending and identify why and how your control started slipping. This can be difficult, but remember that ridding yourself of debt is no good unless you also rid yourself of the behaviours and thought processes that got you there in the first place.

4. Never feel ashamed. Many people experience feelings of shame when it comes to facing their debts.This can be incredibly painful and destructive, so if you’re suffering, please try to tackle these emotions.

Being in debt is not a crime, and it does not make you a bad person. Beating yourself up about your situation is neither justified nor constructive: it can only make your life more difficult.Whatever mistakes you feel you’ve made in the past, remind yourself that you’re now moving forward. Think positively, and seek help if you feel you need it.

 Help Is At Hand In my opinion, the British taboo that still surrounds discussing money is incredibly unhelpful. Too often, people don’t get the information or support they need to deal with financial strife because they’re afraid to talk about their needs. When you’re not longer in the dark about your debts, don’t keep your friends and family there. If you confide in them, you might be surprised to learn that they’ve had similar experiences to you. If your problems seem insurmountable, organisations such as the Citizens Advice Bureau, National Debtline and the Consumer Credit Counselling Service will be able to offer you guidance. Whether you think you owe £2000 or £20,000, I’d urge you to look at your situation and take back control today. When it comes to money, denial is dangerous — but knowledge is power.

As Eleanor Roosevelt once said: “It’s better to light a candle than to curse the darkness”.

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