What is coerced debt?
Coerced debt happens when you are forced or pressured into taking out money or new borrowing. This is often through abuse or control.
You might not know you are a victim of coerced debt. Coerced debt usually involves a partner or other family member.
Examples of coerced debt include:
- Being forced to take out a loan or credit card
- Being made to buy things on credit that you cannot afford
- Having bills put in your name for someone else's benefit
Coerced debt can leave you feeling frightened, trapped or worried about your financial future.
You are not alone. It is important to get help as soon as you can.
What is economic abuse?
It is a form of domestic abuse.
Economic abuse is where someone controls your access to money, finances or other essentials to control you.
It can include:
- Controlling access to your money and how you spend
- Stopping you from working
- Taking out debt in your name
- Making you financially dependent on them
Economic abuse can happen when you are in a relationship or after a relationship has ended. It can also happen between family members.
You can feel threatened, or experience physical or emotional abuse.
You should seek help even if you are unsure whether what you are experiencing is abuse.
If you are in immediate danger, call 999.
How can I get help with coerced debt?
If you are a victim of coerced debt or economic abuse, StepChange can provide free, impartial debt advice to help you understand your situation and explore your options.
We can help you:
- Understand your debts and your financial situation
- Review your budget and consider possible debt solutions
- Explore how to approach the organisations you owe money to
- Identify specialist organisations that can support you further
Your safety matters. If you are worried someone might find out you are asking for help, please tell us. We can discuss safe ways to communicate with you.
We will not refer you to another organisation without checking that you are happy for us to do so.
You do not need to be certain that you have experienced economic abuse to ask for help. We can talk through your situation and help you understand the options available to you.
How do I know if I am experiencing economic abuse?
Economic abuse can be hard to recognise. Your partner or family member might make you feel that their behaviour is normal or your fault.
If you are in immediate danger, call 999.
If it is safe to do so, you should:
- Check any bank statements, bills or credit agreements you can safely access
- Check your credit report to find debts you might not recognise
- Look for household bills, mobile phone contracts, loans, credit cards and other agreements in your name or jointly held with someone else
- Get confidential debt advice.
We can look at your situation in detail and advise on your next steps.
Do I have to repay debt I was forced or pressured into taking out?
Being forced or pressured into taking out debt does not automatically mean you are no longer responsible for repaying it.
However, the circumstances in which the debt was taken out might affect what options are available to you
If you are getting payment reminders, speak to the lender straight away. Explain your situation and ask them to consider this when asking for payments. They should investigate how the credit was taken out in your name originally.
You might have options for challenging the debt or asking for extra support.
We can help you understand your debts, explore possible solutions and advise on your next steps.
What should I do if someone has taken out debt in my name?
If you find out that someone has taken out debts in your name without you knowing, contact the lender. Explain what has happened and ask them to investigate.
If it is safe to do so, keep any relevant information that could help explain your situation. This can be things like:
- Letters
- Text messages/payment reminders
- Additional details of the debt account
You do not need to have all the evidence before asking for help.
We can help you understand your debts, explore possible solutions and identify appropriate next steps.
Can coerced debt be written off or removed from my credit file?
In some circumstances, you might be able to challenge coerced debt.
- You can ask a lender to consider writing off a debt you were coerced or forced into taking out.
- They might not agree but you should explain your situation.
- You can also ask them to submit a correction to information on your credit file.
- However, these outcomes are not guaranteed. Debt write-off and credit file corrections are separate issues.
The most important thing is to explain your situation. If you were pressured or threatened into taking out debt, they should offer you extra support. Be sure to ask what support or options are available.
We can help you understand your debts and discuss next steps. You don't have to be certain what outcome is possible before asking for advice.