Unlike physical violence, the signs of financial abuse aren’t as visible. There are no black eyes or broken bones. Instead, survivors are left with permanent financial scars that can take years to fade, greatly impacting their future safety and wellbeing.
A form of domestic violence and a common tactic of abusers, financial abuse occurs when one partner uses the couple’s finances to gain power and control. Often beginning subtly and progressing over time, the abuse could include acts such as concealing financial information, sabotaging work or education opportunities, controlling or withholding funds and ruining credit.
“Financial abuse is pervasive but hard to detect as it doesn’t leave obvious marks and it’s not uncommon for one partner to manage the majority of a couple’s finances,” said Stephanie Love-Patterson, President & CEO, the National Network to End Domestic Violence (NNEDV). “Currently, three out of every 10 women and one out of every 10 men report being stalked, physically or sexually assaulted by an intimate partner at some point in their life, and of those victims, an astounding 99% report experiencing financial abuse.”
NNEDV, a social change organization, aims to create a world where domestic violence no longer exists. Recognising the significant role financial abuse plays in trapping victims, it developed programmes and resources focused on improving credit scores and addressing both the short and long-term impacts of abuse.
With funding and support from partners like Bread Financial, NNEDV launched the Independence Project in 2017, a credit-building microloan program for financial abuse survivors. By consistently making on-time payments toward US$100 no-fee, interest-free loans, survivors can learn to better navigate the financial system, improve their credit scores and build a more positive relationship with their finances.