Why A Loan For Rent?
Let’s start with the obvious: under most circumstances, you don’t want to borrow money to pay your rent. It’s not sustainable and unless you’re very cautious, you could easily end up even further behind and owing more than you did when you started.
So why are rental loans a thing? Because sometimes emergencies arise. Sometimes unexpected expenses leave you temporarily hurting for cash and you need a way to cover the basics while you work things out. It’s possible to have a pretty good idea of how you’re going to navigate things if you can just avoid losing your house or apartment for the next few months while you do. You may be waiting on an insurance settlement, or back pay, or access to a trust fund, or any number of possible income sources which will be sufficient to get you back on your feet – it’s just going to be a few months. Maybe you just started a new job, or paid for a major car repair and it will take some time to get caught up financially.
That’s when a loan to pay rent might make sense. It might not, depending on your specific circumstances, but it’s an option worth considering.
The most important thing to ask yourself is whether or not the cause of the difficulty is clearly temporary. Just how certain are you that your financial situation will be changing for the better soon? Will it be enough for you to not only start paying your rent every month, but pay back whatever loan(s) you took out as well?
It should go without saying that you should avoid taking out a personal loan simply because you don’t make enough to cover your monthly expenses and aren’t sure when or if that might change. You realize you need money for rent, but you don’t have a clear plan for avoiding the exact same situation again six months from now. Rent will still be due every month, only now you have a loan you’re supposed to be paying back as well. If you couldn’t pay your bills before, you probably can’t pay your bills plus a new monthly installment.
A loan for rent can help you push on with your life and your plans even when things look dark, or it can be another layer of denial and add unnecessary debt to your problems. If you’re not sure which one is you at the moment, ask a few trusted friends and family members what they see happening. If they truly care about you, they’ll be honest with you. If you are upside down and don’t have a clear path towards being able to pay your bills each month, you should take advantage of a local credit counseling service. They can help you put together a plan and many will even negotiate with your existing creditors.
But if that’s not you – if you just need to get through the next six months or weather a specific storm, we might be able to smooth the journey a bit. It’s OK to need help paying rent once in a while or because something unusual has happened. We can’t fix everything you’re facing, but we can make this part of it a tiny bit easier. If you need help paying rent, let us know. We’ll connect you with someone who might be able to help you out.