If you are living in a home you do not own; chances are that you pay rent every month or annually to an individual or a rental company. Having this obligation hanging over your head is a big deal since no one is invulnerable to experiencing financial troubles that can make meeting the required payments a bit challenging.
In this interview, a representative from American Hope Resources has explained what options you have to help keep a roof over your head if you find yourself in such a situation.
Why do some people find it challenging to pay their rent?
Due to global inflation, the cost of goods and services has risen exponentially. People are expected to pay more for their daily needs and might be unable to keep aside money for the rent.
In other instances, some people run into a bad financial situation or emergency that requires them to divert the funds for rent to solve their pending problem. Whatever the case, struggling to pay rent is a real issue still faced by many people around the world.
Can individuals get bank loans to pay their rent?
Using a loan to pay for rent is an available option you can take. Most banks will happily provide you with a personal loan to pay your rent as long as you have a strong credit score.
However, this is only a smart move if you have a reliable income source or expect a big sum of cash from a business deal that will help you manage the loan’s monthly payments.
Will a landlord take installments if the renter can’t pay in full?
All landlords anticipate that you will be able to pay the entire amount of the rent due under the contract you signed before moving in. Therefore, if you offer installment payments, it may become a huge issue, and they might choose to make plans to evict you.
If you do find yourself in a challenging position, you should let your landlord know about it and explain you only intend to make the installment payments for a limited period while you recover. You can also pay rent using your credit card; however, there is no guarantee that your plea will be granted.
What additional options do individuals have if they are unable to afford rent?
When you cannot take out a loan or pay in installments, the most viable option is to move in with family and friends who stay within your location until you can get back on your feet.
There are also a few shelters that can provide you with a roof over your head for a short while. In addition, free food and other necessities are provided at these locations in case your financial situation is extremely dire.
What is the best approach to budgeting for rent payments so that individuals don’t get caught off guard?
We always say this at American Hope Resources, when renting, you should always make deliberate plans to keep some money aside from your monthly income, typically around 30%. It’s advisable to start saving for the rent payment as soon as you pay the previous one. By doing this, you will always be prepared for the subsequent payment date.