PERSONAL FINANCE BLOG

Money shouldn´t stop making your plans come true. Learn how personal loans can help you!
Can't Pay Rent
26 Jun 2019

Can’t Pay Rent? Here Are Loan Options Available

More than 36.6% of Americans live in rented houses. This is the highest rate of rented houses in more than 50 years. So, if you can’t pay rent for whatever reason, it is probable you are not alone.

If you live in a rental house, you must always have ready cash to pay your rent when it’s due. Trying to navigate past your needs, wants and savings can be nerve-wracking. This is especially with a meager income and recurrent rent expenditure.

Is your rent due and you’re short on cash? If you can’t pay rent for the month, you can take out a loan to help. Here are other ways to access loans or make extra cash.

Rent-Burden Is a Present Concern

Living in the United States has become expensive over the years. The rent burden is one of the indicators of this negative trend. In the year 2015, more than 17% of households spent half of their income on rent.

If you are struggling to raise the rent, you could be among Americans currently struggling to overcome the rent burden. However, you are not alone. Households led by African Americans, seniors of all races and youthful breadwinners fall within this category.

The statistics indicate that millennials tend to spend more on housing. This also reflects back to lifestyle choices and preferences. The reality is that millions of Americans struggle to pay rent, a trend that may be due to income disparities.

So given this reality, what are some of the ways that can boost your ability to pay rent.

Consider Loans

If your rent is in arrears, there are valid reasons that may explain your predicament. Part of these reasons may be delayed salaries or temporal unemployment. You could also be a businessperson struggling to adjust your monthly returns. Whichever the reason, there are short–term solutions to your situation.

You are likely to consider many factors before taking a loan. You may consider your ability to repay or the likelihood off falling into a cycle of debt. But your choices may be limited in the immediate terms. Personal loans may be your first consideration in such cases.

Most Americans wonder, if I can’t pay my loan as an individual, what loan options available in the immediate terms are there? Personal loans offer you a realistic option. Such loans are available from various sources.

Banks, credit firms and online lenders will be your priority in that order. Banks have wide-ranging requirements, which may not always provide an immediate solution to your rent arrears. Credit firms are also possible options for you at this point.

Personal loans obtained from banks may require proof of income. If you can’t pay your rent and you have a stable income, you can access a bank loan. If you need money for rent and can comfortably show a consistent flow of income through pay slips, your bank can save you potential embarrassment.

For those who have poor credit but a stable income, no credit check loans may be the option for you. While they may offer a higher interest rate than other loan options, it may be just what you need to catch up on rent.

You also need to prove that you have been inactive employment for the three months before requesting this loan. If you need money for rent, it is possible to access such options direct from the bank.

It is important to remember that not all loans may help. An installment loan may actually make the situation worse for example, as you will be paying not only your rent, but also will be paying off the loan for the next few months.

Credit Unions

Another probable question would be if as an individual I lost my job and can’t pay rent. The bank would not be an option in such an instance. Credit unions would be a possible option for you. Credit unions provide a variety of options for you as a lender.

If you can’t afford rent but have access to a credit union’s loan facility, do not despair. You may need to be a resident of the state within which your creditor operates. You must also not have a bankruptcy concern.

As long as you are over the age of 18 years and can fulfill these requirements, credit unions are your best bet. If as an individual, I lost my job and can’t pay rent, seeking credit options would be a plausible option.

Pay Day Loans

You may also decide to take a payday loan when you can’t pay rent. Online lenders offer the best option to payday loans. You can take as much as your credit limit may allow. You access such loans only with the promise to pay after receiving your salary.

While it is true that rent is not an emergency, your source of income may end impromptu. Accessing a payday loan provides a chance to pay your rent arrears and avoid conflicts with the property owners. If you can’t pay your rent, this option may be useful.

You can access a payday loan online through your mobile phone application or visit their offices. Unlike banks, these lenders only require a commitment to pay as soon as you get your salary. The loan limits they offer often fall within the average rate of rent you would require.

The online option allows you to get the loan advance you need in record time. You can fill in the form online and get the approval of rejection in record time. The payday loans may have a shorter interest repayment period.

The fact these loans are emergency in nature, they tend to charge exorbitant rates of interest to borrowers. Before making the decision to take up payday loans, consider certain things. One such thing is the ability to pay considering the time stipulations.

Most people end up in a cycle of debt because of the failure to deal with recurrent payday debts. As much as you may need money for rent, you need to be objective. The implications that the loan may have on your finances should determine your readiness to commit.

A Caveat is Useful at this Point

A caveat is important when dealing with loans if you can’t pay your rent for more than two months. You may consider other cheaper options for decent housing. The culture of taking loans may become a habit if you are not careful.

Nevertheless, you need to explore every possible credit options. If everything fails, you may decide to relinquish your social status by moving to a cheaper house. You may also have other options available to you if you can’t pay your rent.

Long-term Housing Assistance

You may be eligible for short-term housing assistance. But this depends on the county or state you come from in the USA. Most states and counties in the United States will offer assistance to individuals and families who face temporal hardship to overcome the situation.

You probably think this is a hoax. But in reality, most Cities, States, and Counties have a short-term housing allowance. The objective is to help people struggling with rent to overcome such situations. If you need support in handling your short –term loan obligations, you may decide to apply for this temporal reprieve.

You may need to understand that even when this assistance is available it is short-lived. The government will not provide you with more than three consecutive months of support. If you anticipate, longer periods of economic hardships you need to reconsider.

Applying for long-term housing assistance may be your other option.

Applying for Long-Term Housing Reprieve

If the short-term loan option does not work for you, you may consider shifting into government-sponsored options. The governments at the local and the county levels offer low-income housing assistance to those struggling with rent burdens.

When faced with a scenario where you can’t afford rent, you may consider these public communities in the long-term. The government offers this public housing option to ease the current rent burden. Try to overcome the stereotypes attached to such settings. So that then you may benefit from near free housing.

It’s Even Easier If You Live in Rural Areas

You are eligible to a 30% rent decrement if you live in qualified rural areas. The income-based subsidies measure your income based on average rent in rural areas. If you can’t pay rent in the urban housing setting, moving to a rural area can reduce your rent burden.

Ever Had of Credit Counseling Programs?

In certain cases, you may be in debt to the extent of not qualifying for personal loans. This is normal, especially when you are financing other debt. If in such situations, counseling organizations may provide the intervention you may require.

If you can’t pay rent due to your loan limits, there must be a reason. For instance, disqualification from credit services due to credit unworthiness can be a major concern. This option works for you where the credit counselor takes up the role of intermediary between you and the creditors.

You need money for rent and this option gets you there. Unlike bankruptcy, the credit counseling plan does not have a negative impact on your credit score. The option may guarantee you the reprieve you need to pay your rent.

The credit counselor remains on your report for 5 years after your enrollment. If you can’t pay rent due to credit concerns, this may be an option for you to consider. However, you must realize that with this kind of approach you will still need to repay your loan in full.

Four Alternative Sources of Income to Help You with Rent

Even when considering these options, you need to assess your income. One of the reasons why you can’t pay your rent is because of your income shortfalls. Maybe your rent is not as high but your income is not enough all the same.

If this is the situation, you may need to consider seeking other ways of earning extra income.

Working Nightshifts

Not all businesses operate within the routine 8-5 schedule. You can decide to seek out evening shifts in such businesses that work during night hours.

A common option is the service industry. You could work as a waiter, server or bouncer in such settings while keeping your day job.

The good thing about night shifts is that they are not strictly eight-hour shifts. You can earn extra income and pay your rent easily when you have extra sources of income. If you can’t pay rent, pushing yourself to work in a second job may be your only other option.

Use Your Internet Connectivity to Pay Your Rent

You will be shocked at how much people make online daily. As long as you have access to the internet, you can pay your rent. There are numerous options online to choose from a potential source of extra income to help pay your rent.

If you lost your job or in need of a part-time job, becoming a freelance writer is a possible option. You could become a blogger, graphic designer or editor as you try to make a living. The internet is opening up to a variety of opportunities, which have the potential of making extra income for you.

Therefore, you may need to rethink the amount of money you use on data. The reward for working hard online on the various projects may be the capability to pay your rent.

Seasonal Jobs

Can’t pay rent? You may find it worthwhile to supplement your income by seeking out seasonal jobs. Such options include resort jobs, managing summer camps, filing people’s returns and delivering various orders.

With a seasonal job, you have the flexibility to move from one position to the next all year round. Doing so will guarantee you enough income to pay for your rent. The flexibility of these seasonal jobs makes them a possible consideration for you.

Start a Business

If you need money to pay your rent, starting a business may be another option. You can engage in various business options both online and offline. If you have another job, you can sacrifice more hours for your business.

If You Can’t Pay Rent, Consider the Various Options Available

The rent burden is a confirmation of the harsh economic times the Americans face today. Even so, giving up is not an option. If you can’t pay rent, you can consider the above options and tips on overcoming your rent burden.
If you are looking for credit and loan services please contact us.

Here are some other articles you may find interesting:
Everything You Need to Know About Monzo, the Online App Based Bank
Are instant payday loans worth it?
What Are the Disadvantages of an Instant Credit Card?
What You Need to Know About Getting Payday Loans Online