What is Economic Abuse?

Definition:
Economic abuse is a common form of domestic abuse, and a powerful tool where someone uses money, resources, or access to essential services to control another person and maintain power over them. This can include a current or former partner or family member restricting your access to money, bank accounts, benefits, employment or other essentials; forcing you to take on debt in your name; or sabotaging your ability to earn or save money.

Economic abuse is not about financial mismanagement — it is a deliberate form of control. By limiting your financial independence, an abuser can make it harder for you to meet basic needs, leave safely, or make your own choices.

It often occurs alongside emotional, psychological, or physical abuse, and may continue even after separation — for example, through unpaid child support, withheld assets, or damage to your credit and reputation.

Economic abuse is now legally recognised under the Domestic Abuse Act 2021 in the UK. This recognition means banks, landlords, and service providers are increasingly trained to respond and support survivors through safer financial arrangements and protective measures.

Why it matters:
Economic abuse can be just as damaging as physical or emotional abuse. It undermines your independence, safety, and long-term stability. Recognising it is the first step toward reclaiming control and finding support.

Common forms include:

• Restricting access to money, bank accounts, or benefits.
• Controlling or sabotaging employment, study, or training.
• Forcing loans, credit cards, or debt in your name.
• Monitoring spending or demanding receipts and explanations.
• Stealing money or using your financial information without consent.
• Damaging your credit rating or reputation to limit your future options.

The differences between coerced debt and identity fraud

What is Coerced Debt?

Coerced debt happens when an abuser pressures, manipulates, or forces you to take out credit, loans, or other debts in your name.

It’s a form of economic abuse where control over your money, spending, or credit is used to trap or punish you.

Examples include:

• Being forced or pressured to sign a loan or credit card application you didn’t want.
• Being made to buy something on finance for the abuser’s benefit.
• Having household bills or debts put in your name under pressure.
• Being threatened or intimidated into borrowing money.

Even though the debt might legally be in your name, it was not your free choice and that’s what makes it coerced.

If this sounds like your situation:

• Keep any evidence you can (messages, statements, proof of coercion).
• Seek help from a specialist debt adviser (such as PayPlan or StepChange).
• You may be able to challenge responsibility for part or all of the debt, especially if you were misled or coerced.
• If it feels unsafe to act now, remember: your safety always comes first.

What is Fraudulent Debt?

Fraudulent debt is when someone, often an abuser, takes out credit or runs up bills in your name without your knowledge or consent.

It’s a form of identity theft and financial abuse.

Examples include:

• Opening a credit card, loan, or store account in your name without your knowledge.
• Using your personal details (name, address, date of birth, etc.) to access credit.
• Forging your signature or online consent.

This type of debt is fraud and a criminal offence. You are not legally responsible for debts created without your permission.