Financial abuse can leave you vulnerable to a sudden financial crisis, with limited resources and little or no control over your money. Whether it's due to a partner restricting access to income, forced debt, or other forms of financial abuse, it’s important to regain control of your money as quickly as possible. Here are some ways you can take back your financial power and rebuild stability, even when money is tight.

Step 1: Understand your financial reality

Financial abuse often involves secrecy or misinformation about household finances. If you're facing a cash crunch, start by understanding your numbers.

• Create a budget
  List all your monthly income and expenses. Categorise these into necessities (housing, food, utilities) and flexible spending (luxuries or non-essentials). This process will help you identify areas where you can cut back.
  
  
• Track spending
  Take note of where your money goes daily. This will help you stick to a budget and empower you to make informed decisions.
  
  
• Set priorities
  Focus on essentials and debt repayments before allocating money to non-essentials. A clear understanding of your financial situation gives you a solid foundation on which to plan your next steps.

Step 2: Leverage financial tools and support

Accessing financial resources can be challenging for survivors of financial abuse, but there are tools available to help.

• If you have a savings account or emergency fund, now is the time to use it. These reserves are crucial during a financial crisis. If you don’t have one yet, consider starting a fund as soon as possible to build financial resilience.
  
  
• If you need immediate funds, consider options like overdrafts, credit cards, or personal loans, which can provide temporary relief. However, consider these only if you’re confident in your ability to repay them and avoid unregulated lenders, as they may exploit your situation.
  
  
• If you already have debt and you’re struggling to meet repayments, speak to a Nedbank banker. We offer restructuring plans, allowing you to extend repayment terms and lower your monthly payments. Being proactive can prevent further financial stress.
  
  
• Investigate opportunities for side hustles or part-time work to supplement your income. Do you have a skill you can monetise, such as teaching, crafting, writing, or design? Building a secondary income stream is essential if your main income is being withheld or exploited by your partner.

Step 3: Stay disciplined and take ownership

Breaking free from financial abuse and overcoming a cash crunch requires discipline and determination. Once you’ve created a plan, stick to it as far as possible. Make sure that you cover all your essential expenses and debt repayments before considering any non-essential spending.

If your reduced cash flow seems permanent, find ways to adapt your lifestyle to match your current income. At the same time, look for ways to improve your financial situation, such as upskilling, pursuing a higher-paying job, or increasing your earning potential through side projects.

If your situation requires drastic measures, such as downsizing your home or selling assets, remember that these steps, while difficult, are a powerful means of regaining control. By making these decisions yourself, you remain empowered rather than leaving the choice to creditors or external circumstances.

Taking the first step

Coping with financial challenges after abuse is not easy, but every small step you take towards understanding, planning, and acting on your financial goals moves you closer to stability. Remember – you are not alone, and support is available.

If you’re struggling to navigate your finances or need assistance, contact a Nedbank financial adviser at 0800 555 111. 

If you or someone you know is experiencing abuse at the hands of an intimate partner, call People Opposing Women Abuse (POWA) for support

Helpline: 011 591 6803.