Recently a reader emailed me saying I cant pay the rent this month what can I do? I thought I would create a 10 point action plan to help the renter back on their feet. I though I would share this with everyone who's having trouble paying the rent this month.
I Cant Pay My Rent This Month What Can I DO?
Action 1: This might not be the first thing that springs into your mind but it's very important you do this. Create a budget and list down all your income and expenses to the penny, if you can list your income and expenses to the penny you can make some rough estimates. The point of this exercise is to see how much money you have coming in and how much you have going out. Your first point must be to find ways to slash your expenses and boost your income. You could cut out all non essential spending and find ways to supplement your income such as taking another job. If you can't afford private rent anymore you need to find ways to boost your disposable income and this is a great way to trim your finances and increase your efficiency.
Action 2: You must notify your LANDLORD and inform him of your circumstances. Don't hide from your Landlord, it's only a matter of time until the landlord legally evicts you. It's better to inform the landlord of your situation so you can come to some sort of agreement and then stay or leave on favourable terms. Tell the landlord everything you are doing to improve your situation and why you are in this position to start with. If you've lost your job then most landlords will provide you with more time to improve your circumstances.
Action 3: Boost Your Income. When you can't afford rent anymore you must look to ways to increase your income. If you've lost your job then your priority is to find another job ASAP. Dust off your CV and do the rounds, contact as many recruitment agencies as possible and put yourself out there! It takes 2 to 4 months to find another job so the quicker you start the quicker you'll have some regular income coming in. You can also supplement your income with online income, under the table jobs and jobs that pay cash near you. If you're a hustler you will make a lot of money this way. The key is not to give up, you'll get a lot of rejection and feel disappointed during this time but it's important to keep your chin up and put your best foot forward.
Action 4: Cut Your Expenses. I know I mentioned this earlier, but, this is important too. All non essential spending needs to be suspended when you can't afford rent anymore. Who wants to pay late rent payment charges when you just might be able to afford the rent by making small cutbacks? Rather than asking questions such as can I get help to pay off my rent arrears it's better to get yourself in a stronger position by cutting your non-essential expenses, by thinking this way you are laying the foundations for being able to pay the rent on time or even go on and save enough money to put a deposit down on a new house!
Action 5: Move To a Smaller Place: So many times I see people living way beyond their means when it comes to apartments. Ask yourself, do you really need this additional space, if there's no use for it you're just throwing money down the drain. Having too much space and not being able to pay the rent just doesn't make sense, if this is the case you need to downsize and move to a smaller apartment that meets your needs and is affordable.
Action 6: Get Help. After taking all the actions mentioned above and you still cant pay the rent this month you should consider asking your friends and family for help. They might be able to offer you a place to stay or lend you some money to pay off the rent arrears.
Action 7: Social Housing: Everyone needs a place to stay, after taking proactive steps you might still find yourself with rent arrears and not being able to pay the rent again this month. If you simply can't afford private rent anymore you should consider social housing where you may get help towards the rent.
Action 8: Help With Rent Arrears Charity: There are many charities who help renters who cant pay rent, have rent arrears, or cannot afford private homes. Make a list of the top 5 charities that help with rent arrears and then give them a call and see if you're eligible for help. They are experts and can guide you through the process of getting yourself an affordable place to stay.
Action 9: Get an Emergency Fund: To prevent yourself from getting into rent arrears you should get an emergency fund in place. You should try and save some money every month and build up a reserve. Having a $10,000 emergency fund in place provides you with excellent piece of mind. When you remove all the fear and anxiety from your finances you will be able to make better decisions when it comes to your money.
Action 10: Get Informed: Find out everything there is to know about renting a property or apartment. The more information you have the better decisions you can make. The best situation would be to find affordable housing in a low-rental area where you are being supported by rental assistance. Any savings you make could go towards a deposit for a new home.
I Cant Pay My Rent This Month What Can I Do?
Not paying your rent this month can be an awful position to be in, being in rent arrears is worse. The most important thing to do is to keep your chin up and put your best foot forward. Go through all the I Cant Pay My Rent This Month What Can I Do checklist of actions and get yourself in a better position. I assure you, if you can put the above 10 points into practice within months your circumstances will improve.
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