Breaking Free from Financial Abuse: Recognizing, Recovering, and Rebuilding
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By Bromwich+Smith Staff | 1175 words | Reading Time: 6 minutes | Date: 2023/10/20
When it comes to finances, there are many things that we avoid talking about. Many do not like to share their individual situations with others and keep struggles to themselves. We are firm believers that when we speak about all financial situations, we make it easier for those who are struggling to step forward and ask for help. Financial abuse is one of those topics that can be difficult to talk about but is important to be aware of.
Financial abuse is a form of domestic violence that can affect anyone, regardless of age, gender, or financial background. In this blog, we will explore who is at risk, the warning signs, what to do if you believe you are being financially abused, and your options for recovering and rebuilding your financial life.
Who is at Risk?
It is important to know that financial abuse can happen to anyone. There are certain factors may increase an individual's vulnerability- but these are only some indicators and in some cases there may not be any.
Economic Dependency: Individuals who are financially dependent on their partner are at higher risk. This dependency can arise from a lack of access to employment opportunities, information or resources.
Isolation: Isolation from friends and family can make it harder for victims to seek help or support. Abusers often use isolation as a tactic to maintain control and to ensure that their victim is unable to get supports from others.
Low Financial Literacy: Lack of financial knowledge can make it difficult to recognize financial abuse or manage finances independently. Those with a financial background are not exempt from being financially abused, but they are less likely to do so.
History of Abuse: Those who have experienced other forms of abuse, such as physical or emotional abuse, are more likely to also experience financial abuse.
Warning Signs of Financial Abuse
Recognizing financial abuse can be challenging, as it often occurs alongside other forms of abuse. However, some common warning signs include:
Control over Finances: The abuser controls all financial decisions, including income, expenses, and access to bank accounts and statements.
Withholding Money: The victim is denied access to money or essential resources, making them entirely reliant on the abuser. This can look like an adult receiving an allowance to pay for expenses, needing to provide receipts and a full accountability of spent money.
Excessive Debt: The victim's name may be on loans or credit cards without their knowledge or consent, resulting in crippling debt. This can extend to children as well as adults.
Forced Employment or Unemployment: The abuser may dictate whether the victim works or not, and if they do work, control their earnings.
Financial Transactions: Victims may be coerced into signing financial documents, such as loans or mortgages, without understanding the implications or at times what they are even signing.
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What is Financial Abuse?
Financial abuse encompasses a range of behaviors aimed at controlling and manipulating an individual's financial resources. It includes:
Restricting Access: Denying the victim access to their own money or financial information. This can include not allowing them to have their own credit separate from the abuser as well as keeping all financial documents independent.
Identity Theft: Using the victim's personal information to open accounts, apply for credit, ultimately committing fraud.
Intimidation: Forcing the victim to commit financial transactions against their will, such as signing over property or taking on debt.
Isolation: Preventing the victim from working or studying, further isolating them financially.
Destroying Credit: Ruining the victim's credit score through unpaid bills, loans, or maxed-out credit cards.
What to Do if You Believe You Are Being Financially Abused
Recognizing that you are experiencing financial abuse is the first step toward breaking free. Here's what you can do:
Seek Support: Reach out to trusted friends, family, or a domestic violence hotline to share your concerns and get emotional support. Reaching out for support may be difficult, but having supports in place will help you with all your next steps.
Secure Your Financial Documents: Protect important financial documents, such as bank statements, identification, and legal documents, in a secure location. Consider a trusted friend, or safe deposit box with no paper trail back to your abuser.
Open a Secret Account: If possible, open a bank account in your name alone and begin saving money. This can be difficult if your finances are being controlled by someone else.
Consult a Professional: Consult with a financial advisor, counselor, or attorney who specializes in domestic abuse to explore your options. Recognizing that you need help is the beginning to taking back your control and you will need a team in place to help you with the next steps.
Options for Recovery and Rebuilding
Recovering from financial abuse may feel overwhelming, but there are steps you can take to regain control:
Report Financial Abuse: Contact law enforcement and report the abuse to protect yourself and others from your abuser. This will help you filing reports on identity fraud, and ensure you are safe from your abuser.
Legal Action: Consult with an attorney about pursuing legal action against your abuser.
Debt Relief: Seek professional assistance to address the debt incurred as a result of the abuse, such as debt consolidation or negotiation. You will have a full understanding of what debt is owed, to who, and what you are responsible for.
Rebuilding Credit: Start rebuilding your credit by checking your credit score to understand where your credit stands. Next, open a secured credit card, making timely payments, and managing your finances responsibly.
Financial Education: Enhance your financial literacy by taking courses or working with a financial advisor to gain confidence in managing your finances. We have all the confidence in you and your strength to get through this difficult situation.
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Things to Avoid Doing or Saying
While on the path to recovery, there are things we suggest that you avoid:
Revenge: Resist the urge to retaliate against your abuser, as it may escalate the situation and negatively affect your legal case. Try to keep a clear hear, and remember your end goal of independence.
Isolation: Do not isolate yourself further; seek support from friends, family, or support groups. It may be hard to reach back out to people you have been separated from, but lean into your loved ones for support.
Ignoring Legal Advice: Listen to your attorney's advice and follow legal procedures to protect your rights and interests.
Impulsive Spending: Avoid impulsive spending to cope with emotional stress, as it can lead to further financial problems.
Blaming Yourself: Remember that financial abuse is never the victim's fault. Seek therapy or counseling to address any feelings of guilt or shame. There is nothing that you did wrong to bring this into your own life. You are strong, and can rebuild your financial story.
Financial abuse is a deeply traumatic experience, but recovery is possible. By recognizing the warning signs, seeking support, and taking steps to rebuild your financial life, you can break free from the cycle of financial abuse and work toward a brighter, more independent future.
If you are experiencing overwhelming debt, brought on from Financial abuse Bromwich+Smith can help you take back control. Reach out to any one of our Debt Relief Specialists for a free, personalized, no obligation consultation at 1.855.884.9243, live chat, or contact us here. Lets rewrite your story, and get you back on track today.