What are the different types of Stress?

A certain amount of stress is necessary for optimum performance by an individual (students may not study well if they do not have a little stress about exams); this is evidently good stress, also known as eustress.
Thus, eustress is good stress that brings out our innate strengths and helps us in improving our performances. When stress gets out of hand, it becomes distress or bad stress which will expose our vulnerability and weakness and pave the way for ill-heath and breakdown.
Psychologists say we respond to stress with these steps:
First, during primary appraisal we:

Decide if the situation is threatening
Evaluate our resources
Choose what
to do

We do something to limit the impact of the stress, then engage in a process called secondary appraisal to see if our efforts worked. We continue to appraise the situation until it changes or until it no longer causes us stress.
We are likely to feel less stress if we feel competent to deal with any given situation. We are likely to feel more stress if we feel it over our heads. Illness, tiredness and drug or alcohol addiction can also increase our stress over situations that we might otherwise take in stride.