Coerced debt is a form of economic abuse in which a partner, former partner or family member causes someone to incur debt through force, fraud, misinformation or control over their money.
This can include taking out borrowing in someone else’s name, preventing them from making payments or misleading them into believing that household bills and other commitments have been paid. An estimated 1.6 million UK adults experienced coerced debt in the 12 months to November 2024, while almost one in eight StepChange clients has been affected by it.1
The consequences can continue long after the relationship has ended. A credit record may show missed payments, arrears and unpaid bills, but it cannot explain that these resulted from another person’s deception or control. Victim-survivors can therefore remain financially excluded because of commitments they did not knowingly neglect or debts they did not freely choose to incur.
Amy’s experience contains indicators consistent with coerced debt through misinformation. After her partner offered to manage the household finances, she transferred £1,300 to him each month believing that her mortgage and bills were being paid. When the relationship ended, she discovered that payments had not been made and that she was approximately £11,000 in debt.
From hidden debt to a new home and renewed financial confidence
Amy works as a social worker for her local council, helping people navigate exactly the kind of debt and poverty she once lived through herself. She bought her first house alone, just before the pandemic. Everything was manageable, she says, until the lockdown ended and she was free to go out again. After two years shut indoors, she started spending more than usual, missed a couple of mortgage payments, and only just got back on track.
Then she met someone new who, seeing how she was getting overwhelmed with her finances, offered to take them off her hands. She gave him £1,300 a month to cover the house and bills, and he’d sort the rest. What she didn’t know was that he wasn’t paying for anything. “Not a single bill was paid in the house,” she says. When he left, she discovered she was around £11,000 in debt.
She tried to fix it herself and made things worse. “I couldn’t even make a payment plan,” she says. “It was like, ‘well, you’ve left it too long’, but I didn’t even know about any of this debt, so how was I supposed to sort it?” She was declined for a phone contract, a credit card balance transfer and even 0% finance on a sofa. Her car broke down and she could not afford to repair it or keep up with the finance, so she lost it too.
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Recognising the circumstances behind the credit record
Amy’s recovery was not the result of a single intervention. Support from her parents and current partner helped her clear the debts, while her own decisions and changed financial habits were central to rebuilding her position. Loqbox played a specific supporting role: helping her establish a new payment history, strengthen her credit profile and regain confidence as she moved forward.
Loqbox cannot undo coerced debt, determine whether abuse has occurred or replace specialist domestic abuse services and regulated debt advice. Its role begins when a member is ready and able to rebuild.
However, rebuilding tools alone are not enough. Firms across the financial system must be equipped to recognise indicators of economic abuse, provide safe opportunities for disclosure and respond with appropriate support and forbearance. A missed payment records what happened; it does not always explain why it happened or who controlled the decision.
Meaningful financial inclusion therefore requires both routes to recovery and a financial system capable of recognising when exclusion has arisen through abuse rather than an individual’s unwillingness to meet their commitments.
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