One out of every three women will be abused by an intimate partner in their lifetime. Many of these survivors of domestic violence, in addition to facing physical and emotional concerns, face serious financial concerns after separating from an abuser. According to a report from the General Accounting Office, almost 20 percent of welfare recipients had experienced domestic violence in the prior year, and about 65 percent had been victims of domestic violence at some point. Other studies have shown that 30 percent of employed survivors have lost their jobs because of domestic violence.
Many of these women are low- or moderate- income, and the domestic violence may have created a financial crisis as well. Managing credit and financial problems can be an overwhelming challenge for them, especially if they have little financial experience, as they escape abusive situations and rebuild their lives. This site is part of an joint initiative with the National Consumer Law Center and the Center for Survivor Agency and Justice.
Creating an income and expenses budget is essential for any survivor trying to get or stay out of financial trouble. It is particularly important if the survivor’s income or expenses have changed as a result of leaving an abuser. Budgets can also be used to demonstrate financial need if the survivor is attempting to secure child support payments from the abuser. A sample budget form can be found here.
Once a budget has been created, the survivor can begin to prioritize how to pay existing debts while still meeting essential family expenses. Here are sixteen basic guidelines to follow. For more detailed explanations read our brochure on Prioritizing Your Expenses or consult Chapter 3 of the Guide to Consumer Rights for Domestic Violence Survivors available here.
Credit reports may be used by landlords when you apply for an apartment, employers when you are looking for a new job, insurance companies when you apply for car or homeowners insurance, and creditors when you are trying to access affordable credit. Credit reports and your credit score also determine the amount and interest rate of any loans you apply for. As a consumer, you have the right to delete certain information or to include your side of the story on your credit report. Under federal law, you are also entitled to receive one free credit report each year from each of the three major credit bureaus. To obtain your free credit report, go to www.annualcreditreport.com, or call 877.322.8228. Be wary of other sites offering “free credit reports” that ask for your credit card information and may enroll you in a monthly plan with a fee.
Suggestions for building and repairing your credit history can be found here.
Utilities are necessary for all individuals, but getting utilities set up and kept current can be particularly difficult for domestic violence survivors. Several roadblocks to keeping or acquiring new utility service exist. The utility company may try to hold a survivor responsible for delinquent utility bills on an account managed by the abuser. In addition, a survivor who has any preexisting utility debt may find it hard to get new service.
Several options exist to try and overcome these barriers as well as get assistance with future payments.
Many survivors may have outstanding student loan debt that contributes to their overall debt burden. Others may want to return to school and will need student loans to pursue that avenue. For information on the different types of loans and remedies for loan debt please visit Student Loan Borrower Assistance.
If a survivor is facing unmanageable debt, filing for bankruptcy is an important option to consider. It can help eliminate most outstanding debt, stop foreclosure on a home, and help restore utility service. For more information on bankruptcy, three consumer brochures can be found here. To find a consumer bankruptcy attorney near you, visit the website of the National Association of Consumer Bankruptcy Attorneys.
Arbitration Fairness Day was a huge success! We had 35 victims, 40 advocates, and approximately 35 DC lobbyists/advocates attend the event. There were close to 100 meetings scheduled with Congressional offices and almost all meetings were attended by at least one victim, one advocate, and one lobbyist.
The victims' stories were incredible. They explained in their own words how forced arbitration has impacted them - denying them justice, compensation, and closure. Thanks to the NACA members who attended Arbitration Fairness Day.
You complimented the victims' stories perfectly - adding additional insight into the injustice of forced arbitration and the need for Congressional intervention.
Click the following link to read the Huffington Post article on Senator Feingold introduction of the Senate's Arbitration Fairness Act at Arbitration Fairness Day - http://www.huffingtonpost.com/2009/04/29/consumer-protection-measu_n_193201.html.
Getting the Arbitration Fairness Act passed is going to be a long hard fight. We will continue to work hard to keep up the pressure on Congress and the momentum around the issue moving forward.
NATIONAL ASSOCIATION OF CONSUMER ADVOCATES ©2007 NACA