1.6 million people have experienced coerced debt

It comes as the debt charity estimates around one in eight – 12% – of its debt advice clients are impacted by it. Coerced debt is a form of economic abuse where the perpetrator coerces a victim into taking on debt.

Currently, victim-survivors face years repaying coerced debt, often struggling to make ends meet due to these repayments. They experience financial exclusion due to the negative impact on their credit reports and, in some cases, are barred from working in certain jobs.

StepChange’s research has also uncovered inconsistencies in the quality and level of support for people experiencing coerced debt, with some key problems identified including a lack of specialist knowledge and compassion.

Additionally, debt write-off is seen as crucial for victim-survivors with coerced debt wherever possible and has vital benefits. This, however, remains rare, in part due to barriers to separating joint debts.

As such, StepChange, alongside organisations such as Surviving Economic Abuse, Refuge and UK Finance, is calling for a cross-government economic abuse taskforce to lead change and overcome cross-cutting legislative and regulatory barriers to ensure victim-survivors can achieve economic justice.

StepChange chief executive Vikki Bronridge said: "Those who have experienced coerced debt should not pay the price for their abuser’s behaviour.

"Yet restoring a victim-survivor’s finances can be a long and complex process, particularly in the case of joint debts and joint mortgages. The challenge of dealing with debts that have been coerced is compounded by the emotional and mental health impacts of abuse.

"Our research highlights the urgent need for government leadership and a collaborative approach from regulators, financial services and advice agencies in supporting victim-survivors to regain financial control and ensure they do not spend years paying back coerced debts.

"A more consistent approach to debt write-off and credit file restoration are two key recommendations that would help to achieve this."

Sam Smethers, interim chief executive at Surviving Economic Abuse, added: "StepChange’s report paints a stark picture of how widespread and devastating coerced debt is.

"We hear time and time again that abusers are leaving victim-survivors drowning in debt, making it impossible for them to rebuild their lives and provide for their children. Often survivors are forced to rely on foodbanks to feed their families and many are left with destroyed credit ratings for years to come.

"Victim-survivors should not have to pay for abusers’ crimes. We want to see their debts cleared and their credit ratings restored. That’s why we, alongside StepChange, are urging the government to set up a cross-government taskforce on economic abuse to agree on solutions to coerced debt and credit restoration.

"It’s the only way to help survivors and their children escape and safely rebuild their lives." 

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