Johannesburg - Financially abusive relationships are a form of abuse that is not always looked into, according to Charnel Collins, CEO of debt counselling firm National Debt Advisors’ (NDA), especially during this year’s Days of Activism for No Violence Against Women and Children Campaign drive.
Collins says that while physical, emotional, sexual and verbal abuse are the most common forms, it is equally important to acknowledge the effects of mental and financial abuse on women.
“On our NDA client base, the percentage of women under debt counselling is less than that of men; however, women have been found to have a significantly larger amount of unsecured debt, such as credit card debt, student loans and personal loans," said Collins.
She said that in several situations, the woman does not even realise she’s in a financially abusive relationship.
“The woman is often the primary breadwinner; however, her partner demands to control the finances, leading her to believe that the partner is being supportive. Unfortunately, this can lead to further emotional and mental abuse. The woman, unfortunately, becomes financially dependent on her partner and is unable to exit the relationship,” she added.
Collins said that in other instances, women do not have access to their bank accounts due to their partners' controlling them, meaning that their credit agreements are limited, thus meaning detriment to their credit records, as they have someone else who is spending their money and could potentially incur debt in their name.
Collins believes financial literacy and education are vital drivers in leading women to empower themselves and take control of their finances.
According to Collins, as women and mothers, investing in the wellbeing of homes and family life is important, but gaining financial knowledge is essential.
Collins said some of the ways to get out of a financially abusive relationship are for women to ensure they start gathering physical and electronic documents for any credit agreements that are in their name, make sure the contact details (phone, email, etc) on any agreements are theirs, and that correspondence comes directly to them.
“You have the right to request this from your creditors and service providers for any agreements linked to your name and identity number. No one else may give instruction or receive information on your bank accounts or credit agreements, other than you – unless they have legal power of attorney,” added Collins
Other tips offered to women include drawing a credit report and finding out exactly what their debt exposure and credit-worthiness look like. People are entitled to one free credit report from every credit bureau once a year.
“Empower yourself and become financially informed. Visit sites that can financially educate and empower you about financial literacy and your rights and you are not alone in this. Find someone who you can trust and talk to.
“Understandably, getting out of any type of abusive situation is not easy. It is important to know that there is help out there, whether through debt counselling or any type of financial education,” said Collins.
The Star