We all hit bumps in the road when we cannot pay our bills. It is usually unexpected, but it hits us hard. We may lose our job or have an emergency medical expense. We may have a huge repair bill that we did not count on. No matter what it is, it puts us in a terrible position. We just do not have the money to pay our bills. Even worse, we may be left thinking I need a loan for rent.
This Q&A can Help You To Find the Best Option to Pay the Rent
Can I Get A Loan To Help Pay My Rent?
If you are in a position where you are thinking I need a loan for rent, chances are you need emergency help with rent. You most likely cannot wait for a long period of time for money. You can get a personal loan to pay your rent. A personal loan is when a lender, like a bank or credit union, agrees to lend you a specific amount of money. You must repay the money with a regular monthly payment for a specified number of months. The money you borrow from the lender has interest attached to it. The interest is figured into your regular monthly payment.
A lender looks at several factors when determining if they want to lend you money. The most important factor is your credit score. Once you fill out an application, the lender looks at your credit report to determine your creditworthiness. These are unsecured loans that do not require collateral. Loans can vary in amounts from $1,000 to $50,000. You should borrow only the amount of money you need. Do not borrow any more than that.
You can get a loan to help pay your rent, but that does not mean it is the right answer for you. Remember you need to pay back the loan. The more you borrow, the more you have to repay. If you decide to take out a loan, make sure you are able to pay it back. If you cannot pay back your loan, it will decrease your credit score. Missed and late payments are the cause of most bad credit scores. You do not want to put yourself in a worse place financially.
What If I Have Bad Credit and Can’t Pay My Rent?
You need a loan to pay rent and you know you have bad credit. Despite that, you say I need a loan for rent. What do you do? If you already have bad credit and cannot pay your rent, you may want to make some other changes. A loan may not be the best option for you, but if all you can think is I need a loan for rent, you do have options. You can apply for a loan online or through a credit union. These lenders usually have less strict lending policies and lend to those with bad credit. While they still look at your credit, they are more flexible.
Before you consider a personal loan, you should know your credit score. You should get a copy of your credit report. When you know what is on your report, you can make better decisions. Sometimes, there are errors on your credit report and may be able to fix them. If you do have bad credit, you can work hard to increase your credit score. The better your credit score, the easier it is to obtain a loan. You can also build up your credit by obtaining a loan and paying it back timely. If you are able to make consistent and timely payments, it helps to improve your credit. If you do not think you are going to be able to pay back the loan, you should not apply for one.
There are ways to get cash fast, but they have limits. There are payday loans, which typically do not require a credit check or a lengthy application process. They require proof of your employment and how much money you earn. They often lend you the amount of money they know you can repay. Repayment is in one lump sum and within a short turn around time, such as a few weeks. These loans can get you money quickly to pay rent, if you are in a bind. They should not be the way you pay your rent on a regular basis. You may need to look into other ways to secure money on a regular basis.
Can I Get Evicted If I Can’t Pay My Rent?
You know your rent payment is late this month and you might think I need a loan for rent. You are probably wondering how long before you get evicted. Your landlord does have the right to evict you if you do not pay your rent. However, your landlord just cannot come to you one day and tell you to leave. There are steps he or she must follow to legally evict you. Your landlord must inform you in writing that your rent has not been paid. He must give you a certain amount of time in which to become current with your rent.
The letter must also state that if you do not pay the rent, he will evict you. That must be clear in the written correspondence. This process may take about one month. You should review your lease paperwork because that includes specific information about when your landlord can evict you.
The process is often difficult for the landlord, so it is not something he wants to do. Talk to him about your situation and he may be willing to work with you. Even if you can only pay a portion this month, but can pay the rest of what is owed in a few weeks or by the next month, he might say ok. You will not know unless you have a conversation. However, if your landlord does decide to move forward with eviction, you can always countersue. These all can be lengthy processes.
You do have some rights in the eviction process. It is important that you know them. The first is a notice in writing that your rent is late and you have so many days to pay it. This is a short window of time. It can be as short as three days, but as many as ten days. In reality, if you do not pay your rent, you can be evicted. Honesty really helps a lot here. You should talk to your landlord. See if you can get him to agree to a partial payment. This could save you from being evicted. You may be able to avoid eviction by paying some of the rent.
Can I Find Help To Pay My Rent?
It feels terrible when you cannot pay your rent. There are other solutions besides applying for a loan. Be sure to understand all the options before deciding a loan is the right one for you. Most states have programs that offer rental help. These programs are in place to prevent people from being evicted. They usually have requirements that you must meet. Seniors and those who are disabled may meet the requirements more easily. Often these programs only provide assistance to a person once per calendar year. You should contact the Department of Health and Human Services in your state to see if you qualify.
There are also other organizations that provide help to pay rent. Many churches provide assistance to those who are not able to pay their rent and are at risk for eviction. Local charities are also willing to help pay rent for someone to help them avoid being evicted. The local housing authority in your area can provide you a list of organizations and charities that help pay rent. These organizations gift this money to you. They do not expect repayment. This may be the best course of action instead of taking out a loan.
Keep in mind that if you are constantly late with your rent, your landlord may evict you anyway. Or if you are constantly trying to make partial payments, your landlord may evict. If he does not attempt to evict you, he may not be willing to sign a lease renewal with you.
What Else Can I Do To Pay My Rent?
It is not a good feeling to constantly think I need a loan for rent. It may be a good idea to find ways to have the money to pay your rent. You may need to cut back on expenses or find other ways to reduce the amount of rent you pay. One of the best ways to reduce how much money you are paying in rent is to get a roommate. The roommate can share half of the rent and utility expenses with you. If the roommate also signs the lease, that person is legally bound to pay the rent. Make sure you agree to the terms and have it written in a contract. This prevents any confusion or disagreements.
You can reduce the amount of money you are spending on utilities and make some changes to further reduce the cost.
Save on Energy
Changing the temperature on your thermostat is a great way to save money. You can use a blanket in the winter and turn the thermostat down a few degrees. It will not feel that much colder and could save you a decent amount of money if your heat is not constantly running. In the summer, open the windows and run fans. Decreasing the number of days that you use air conditioning saves you a lot of money. Just changing the thermostat by a few degrees saves you hundreds of dollars.
Change Light Bulbs
Change your light bulbs to energy-efficient light bulbs. They save money on your electric bill. Only use light when you absolutely need to and turn on the least amount that you need. Washing your clothes in cold water also cuts down on your electric bill. When you use hot or warm water, you need electricity to heat the water. Using cold water eliminates that.
You could also try to negotiate the amount of rent that you pay. If you a renting from an individual and not a corporation, you have a better chance of negotiating. You can use techniques such as not having pets, not smoking in the house, and extending the amount of notice you give if you choose to move out. All of these items may persuade your landlord to decrease your rent. Keep in mind that you should spend about 30 percent of your income on rent. Anything more than that is putting you in a bad position.
Should I Create A Budget To Pay My Rent?
If you still find yourself saying I need a loan for rent, it is time to put yourself on a budget. Being in a place of constantly not able to pay your bills is not comfortable. You cannot sustain it for too long. You should sit down and fill out a worksheet to get yourself on a budget. This way you can see all of your expenses. You can see how the money you are spending lines up with the money you are earning. You can also see areas where you can cut expenses. Are you paying for things that you do not use, such as a gym membership or magazines? If so, cut those memberships immediately. Cancel them and put that money towards your rent. Are you eating out often? Limit how much you eat and start cooking for yourself. This not only saves money but it is healthier.
When you write down all of your expenses and after removing the items you do not use, take a hard look at what is left. Of these items, what is a necessity? For example, do you really need cable and internet? If so, are you able to cut back to a cheaper plan? If you own a car, you have to put gas in it. Do you need to do as much driving around as you are currently? Find ways to cut back how much you drive and therefore eliminate how much gas you use. Deciding to use your car less is better than feeling like I need a loan for rent.
What should I do?
Only you can decide which of the options fits you best. You do not want to feel like I need a loan for rent. That does not mean that obtaining a loan to pay your rent is the answer. If you cannot pay back the loan, it is absolutely not the answer. Applying for a loan that you already know you cannot afford is a bad decision. It puts you in a worse place financially. You will always feel like I need a loan for rent if you fall into that cycle. No one likes to ask friends or family to borrow money. That may be a better option if you just need a little cash to see you through a tough spot. If you know you are going to have a windfall of money, a loan may be a great option.
You should talk to your landlord and see if he is willing to take a partial payment. Try to negotiate the terms of your rental agreement and see if you can reduce the cost. You do not know what can happen if you do not try. Attempt to decrease how much money you are spending so that you have more money to pay your rent. No one wants to feel stuck and say I need a loan for rent. Perhaps it is time to find a new place to live. Moving would have costs associated with it but it could be cheaper in the long run. Look around to see if you can move to a different town and find cheaper rent.
There are many organizations and charities that can offer a one time gift to help you pay rent. This can help you avoid eviction while you are trying to find other ways to pay the rent. You could try to find a part-time job to offset the cost of your rent. It is not a completely hopeless situation as long as you know where to look for help. Do not give up. Do not think a loan is the only option. It may be the best option for you. You should find otherwise to gain extra income when you feel like I need a loan for rent.
Julia Peoples is a long-time business manager focused on providing decision making assistance to the public. She works with people at key points of their lives who are making important retirement and financial decisions. She has had many articles published that educate the public on sound financial decision making.
Julia writes for those who are working towards financial freedom or a better understanding of how finances work. She has shared her financial insights with individuals on a one on one basis for years.