
Recovering From Financial Trauma
When we think about domestic violence, our minds often turn to physical and emotional scars. However, one of the most overlooked impacts is the profound financial trauma that survivors endure. Domestic violence doesn’t just leave people emotionally and physically wounded - it often leaves them financially devastated, entangling them in debt, limiting their earning potential and causing lifelong damage to their financial confidence and create emotional scars that extend to the rest of the family, most often, the children.
Financial abuse is prevalent in many domestic abuse cases and the Women’s Aid Organisation (WAO) have found that financial abuse occurred in 80% of the cases they handled in 2020. Financial abuse does not only arise from domestic violence. Agensi Kaunseling dan Pengurusan Kredit (AKPK) has also reported that in Malaysia, one in three victims of elder financial abuse keep it a secret. Low-income older adults are more likely to be victims of financial abuse than wealthy seniors. In an environment where our population is aging and there are more news coming out of violence against women, it is time that we recognise financial abuse and the effect it can take on the individual.
A Form of Control
At its core, financial trauma stems from financial abuse, a tactic often used by abusers to control and manipulate their victims. This can look like:
- Restricting access to money: Abusers might prevent their partners from having their own bank accounts or credit cards, leaving them completely dependent.
- Sabotaging employment: Many abusers interfere with their partner’s ability to work by preventing them from getting a job on the basis of religion or culture, thus disrupting their work, or even harassing them at their workplace.
- Accumulating debt in the victim’s name: Some abusers may take out loans, run up credit card bills, or default on payments using their partner’s personal information, destroying their credit score.
For many survivors, escaping an abusive relationship doesn’t just mean finding physical safety - it means starting from scratch financially. Unfortunately, financial trauma can remain long after the abuse ends.
Long-term Impact
The consequences of financial abuse are far-reaching. Survivors often find themselves facing:
- Ruined credit scores, making it nearly impossible to secure housing, loans or even certain jobs.
- Mountains of debt they didn’t incur but are legally responsible for.
- Limited work experience or gaps in employment history due to years of economic sabotage.
- Psychological scars that lead to financial insecurity, fear of managing money or avoidance of financial decisions altogether.
This financial instability can create a vicious cycle, where survivors feel trapped in poverty, unable to rebuild their lives or gain economic independence, further perpetuating their trauma.
Rebuilding Confidence
Recovery from financial trauma requires more than just rebuilding a bank account, it’s about restoring a sense of control and autonomy over one’s finances. Here’s a path survivors may be able to consider:
- Acknowledge the trauma: The first step is recognising that financial trauma is real and that it’s a direct result of the abuse. Survivors often feel guilt or shame around their financial situation, but it’s crucial to remember that financial abuse was never their fault.
- Take stock of the situation: Survivors need to evaluate their financial landscape, from understanding their credit score to knowing the extent of debt in their name. Organisations that provide free counseling, such as domestic violence shelters or community support groups like WAO or Telenísa, can be a great starting point.
- Start small: Even small steps, like opening a bank account in one’s own name or setting up a budget, can be empowering. These actions help to restore a sense of control and independence.
- Address credit damage: Repairing a credit score can be daunting, but it’s a key aspect of financial recovery. Survivors can request their credit reports from the likes of CTOS via the Touch ‘n Go app. Seeking help from the likes of AKPK can help in restructuring your debts.
- Create a support network: No one should have to recover alone. Find a community of supportive friends, family members, or support groups specifically for domestic violence survivors that can provide emotional and financial guidance.
Importance of Financial Independence
For many survivors, reclaiming financial independence is not just about money - it’s about reclaiming their life, their freedom and their self-worth. The trauma caused by financial abuse can be overwhelming, but with the right support and resources, survivors can rebuild their financial confidence and future.
Every woman deserves to feel safe and secure not just physically, but financially. By breaking the silence on financial trauma and domestic violence, we can create more pathways for survivors to thrive.
Reach out for help if you or someone you know is experiencing domestic violence or financial abuse.