What Are the Best Loan Options If You Cannot Pay Your Rent?

Most individuals who pay rent will know that the expense can weigh heavily on any sort of monthly budget. Depending on where you live and your income, you may have to pay up to 60% of your earning to have a roof over your head. This may not be a problem by itself, paying the rent can be difficult or impossible if you are laid off or if your income is reduced from one month to another.

The issue of not being able to pay the rent usually leads people to look for cheaper houses or apartments, but moving house is not always possible. Those who need to live close to their workplace are often forced to look for other ways to get the money needed to pay the rent.

We’ve looked at the best and most popular ways that people use to obtain the money needed to pay their rent and have selected the ones that are the most efficient.

Always explain what issues you’re having

If you are unable to pay the rent, the first thing that you should always do is talk to the landlord. Contact him and explain that you will be unable to pay the rent on time. Also, try to explain why you find yourself in this situation. If you have a good reason, most landlords may even agree to postpone your rent by one or two months. While you will have to repay all the money, you will at least have a small window to get things back on track financially.

Depending on your relationship with the landlord, you might also be able to use the deposit that you’ve paid when you moved in as a rent payment. You will have to repay the money afterwards, but you will at least be able to skip a month’s worth of rent.

Use an online service to borrow the money

There are numerous online money-lending services that will let you borrow up to £1,000 simply by filling out an online form and sending in a copy of your bank statement. The main advantage with these is that you can get the money in under 24 hours, which is great if you’re in the final stretch and have exhausted all other options. Furthermore, most companies will not report small loans to credit registers, which means that your credit score will be unaffected regardless of how often you borrow money.

Unfortunately, online loans are also relatively expensive. For a £1,000 loan, you may have to pay up to £100 in interest alone.

Get a personal loan from your bank of choice

Personal loans are easy to get and offer a lot of flexibility in terms of how you can use the money. They also have lower interest rates than credit cards, making them the preferred choice when you’re in a pinch. The ideal course of action is to get a medium-sized loan and use part of the money for the monthly repayments, and part for your rent. You will still have to repay the loan in full, but the amount of money that you borrow may give you enough time to get your finances back in order or find another source of income.

Reduce your monthly expenses or find additional sources of income

If your income has been reduced, you may be able to still pay your rent if you lower your regular monthly expenses. Go through your monthly budget and try to eliminate as many non-essential expenses as possible. If you have online subscriptions to services such as Netflix, consider putting them on hold for a while. Furthermore, look for bargains and use coupons whenever possible.

To sum it up

Not being able to pay the rent may seem scary, but solutions are easy to find. Simply plan your expenses to the best of your ability and try to spend as little as possible. If possible, try to use loans only as a last resort. Although they may seem like the best way to get the money that you need, you will still have to repay them, which can be difficult if your income has been lowered substantially.

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