1.3 The Impact of Financial Abuse
Create Dependency:
Victims may feel trapped in abusive relationships due to their inability to support themselves financially. This dependency is often deliberately cultivated by the abuser, who may restrict access to bank accounts, prevent the victim from working, or sabotage their efforts to gain financial independence. Over time, this enforced dependency erodes the victim’s confidence and reinforces the belief that they cannot survive without the abuser.
- Example: Consider a victim who is denied access to their own income or forced to account for every penny spent. Over time, they might believe they lack the skills or knowledge to manage money independently, making the idea of leaving the abuser feel impossible.
Cause Emotional Distress:
The stress of financial abuse can lead to anxiety, depression, and other mental health issues. Constant worry about how to pay bills, feed children, or cover basic necessities can cause overwhelming stress. The victim may also experience feelings of shame or guilt for being in this situation, exacerbating their emotional distress.
- Example: A victim who is constantly criticized or belittled for their spending habits may start to internalize these negative messages, leading to low self-esteem, chronic anxiety, and a deep sense of inadequacy.
Limit Future Opportunities:
Financial abuse can damage the victim’s credit, deplete their savings, and create legal issues, all of which can hinder their ability to rebuild their lives after leaving the abuser. A poor credit history can prevent victims from securing housing, obtaining loans, or even getting a job. Additionally, abusers may leave victims with debts they did not incur, further complicating their financial recovery.
- Example: A victim who discovers that their partner has taken out loans or credit cards in their name without their knowledge may face years of financial recovery. Even after leaving the abusive relationship, they may struggle to rent an apartment or qualify for a car loan due to the financial damage caused by the abuser.
- Case Study: Maria’s Story – Maria was in a relationship where her partner controlled all their finances. He opened credit cards in her name, maxed them out, and refused to pay the bills. When Maria finally left, she found herself with thousands of dollars in debt and a credit score so low that she couldn’t qualify for a rental apartment. It took years of working with financial counselors and rebuilding her credit before she could regain financial stability and start over.