When we think of abuse, physical violence often comes to mind. However, it’s crucial to understand that abuse takes many forms, including emotional, mental, and financial abuse. In recent years, financial abuse, also known as economic abuse, has gained recognition as a significant issue that can have devastating consequences for victims.
What Is Financial Abuse?
Financial abuse involves one partner exerting control over the other’s finances, creating an environment of dependency and manipulation. This can manifest in various ways, such as:
- Forcing the victim to hand over their earnings:
Abusers may demand that their partner surrenders their income, leaving them financially powerless. - Denying access to money or employment:
Victims are often barred from accessing funds or pursuing work, rendering them entirely dependent on the abuser. - Monitoring and scrutinizing expenses:
Abusers may insist on detailed accounts of every expenditure, further eroding the victim’s financial autonomy. - Hiding or restricting access to financial accounts:
Victims might be denied access to their bank accounts or credit cards, leaving them with no financial control. - Coerced debt:
Abusers often force their victims to take on debt in their name, adding to their financial burden.
The Impact of Financial Abuse
Financial abuse has far-reaching consequences that extend beyond the immediate relationship. Victims often find it challenging to break free from their abusers due to various factors, including:
- Limited resources:
Victims may lack the financial means to leave the abusive relationship or secure basic necessities like housing and food. - Damaged credit:
Abusers can harm their victim’s credit rating, making it difficult for them to access loans, housing, or employment opportunities in the future. - Dependency:
Victims are made to feel entirely reliant on their abusers, diminishing their self-esteem and confidence. - Isolation:
Abusers may use financial control to cut off victims from support networks, further trapping them in the abusive relationship.
Addressing Financial Abuse
Recognizing the gravity of financial abuse, the UK government took a significant step by formally acknowledging it as a form of domestic abuse in the Domestic Abuse Act 2021. This act defines “economic abuse” as any behavior substantially impacting a person’s ability to manage money, property, or obtain goods and services.
The financial services industry is also taking action to combat financial abuse. A voluntary code of practice, championed by Women’s Aid in collaboration with Co-op Bank, encourages financial institutions to:
- Identify and raise awareness of financial abuse:
Firms are urged to educate their staff on recognizing and responding to abuse cases. - Offer support to victims:
Financial institutions should provide victims with appropriate assistance, such as connecting them with law enforcement and helping them regain control of their finances.
Where to Seek Help
If you believe you are a victim of financial abuse or need advice on this matter, several support networks offer confidential assistance:
National Domestic Violence Freephone Helpline: Available 24/7 at 0808 2000 247.
Men’s Advice Line: Contact them at 0808 8010327.
Women’s Aid: Seek guidance and support from Women’s Aid.
National LGBT+ Domestic Abuse Helpline (run by Galop): Reach out at 0800 999 5428.
Samaritans: For emotional support, call 116 123.
Additionally, Debt Movement’s friendly team is ready to discuss your circumstances and provide guidance tailored to your situation. Don’t hesitate to reach out—we are here to help you regain financial independence and security in 2023.
At Debt Movement we provide professional debt guidance and solutions that help you move out of debt. We offer non-judgemental financial guidance to relieve the burden of financial strain and offer support on your journey to financial freedom. Request a free call back today.
