New research from StepChange Debt Charity has found that around 3% of UK adults, equivalent to 1.6 million people, have experienced coerced debt, a form of economic abuse where perpetrators force victims to take out credit against their wishes. The charity estimates that one in eight of its debt advice clients are affected by the issue.
The charity’s report, Too close to home: StepChange debt advice clients’ experiences of coerced debt, highlights how a lack of consistent support, legislative barriers, and inflexible credit reporting systems are preventing victims from rebuilding their financial lives. It calls on the government to establish a taskforce to ensure victim-survivors can achieve economic justice without being forced to repay debts accumulated by abusers.
Vikki Brownridge, CEO at StepChange Debt Charity, said: “Those who have experienced coerced debt should not pay the price for their abuser’s behaviour. Yet restoring a victim-survivor’s finances can be a long and complex process, particularly in the case of joint debts and joint mortgages. The challenge of dealing with debts that have been coerced is compounded by the emotional and mental health impacts of abuse.
“Our research highlights the urgent need for government leadership and a collaborative approach from regulators, financial services and advice agencies in supporting victim-survivors to regain financial control and ensure they do not spend years paying back coerced debts. A more consistent approach to debt-write off and credit file restoration are two key recommendations that would help to achieve this.”
The report features first-hand accounts from those affected. Liz, a StepChange client, described how the economic abuse she endured from her ex-husband negatively impacted her finances for over a decade. She said: “It seems to leech into every aspect of your life and the roads you can take are so different to everyone else’s.” She explained that her damaged credit file prevented her from securing a mortgage or buying a car on hire purchase, forcing her to rely on family for financial support. She also feared losing a job opportunity due to the requirement for a credit check and had
