Avoid Slipping into Rent Arrears

Avoid Slipping into Rent Arrears

If you find yourself in rent arrears, you’ll no doubt be focused on getting yourself out of them. Whether you’re trying to pay back the money owed, or stopping your landlord from throwing you out on the street, it’s safe to say that your mind will be fixed firmly on the short term. However, once the dust has settled a bit, and whatever action has been taken against you, it’s worth thinking about how you got in this mess in the first place. Many people find themselves in rent arrears because of a sudden change in circumstances, such as losing their job. For others, though, it’s more a case of poor budgeting. When the day to pay their rent comes around, they don’t have enough to cover the full amount- and those shortfalls can quickly add up into a pretty sizeable sum. If you want to make sure that you don’t end up in this situation in the future, then you’ll need to make some big changes to the way you handle your finances. Fortunately for you, we’re here to give you a few pointers that you can put to use to do just that!

It's Time to Start Budgeting

First of all, you can’t manage your money if you don’t have a clear picture of your income and outgoings. That means you’ll need to sit down with a pen and paper and figure out just where your money is currently going. You might be surprised at just how much of your earnings are wasted on things you don’t actually need. Once you know the lay of the land, then you can identify key areas where you could save a lot of money- and then put that cash to use on more important costs. Budgeting is key for anyone serious about managing their finances, so set aside money for rent and bills- and make sure you stick to this!

Prioritise, Prioritise, Prioritise

Next up, if you have a lot of different debts to keep on top of, then you should prioritize them so that you are at least paying some of them off. For instance, council tax and rent arrears can lead to some very serious consequences if not dealt with, but money you have borrowed from a friend or family member can probably be put off until a later date if you speak to them. Arrears should even come ahead of credit card bills, since your home is on the line here. The only way that you can work yourself out of your current debts is by paying them off, so see what can be done to take the pressure off. For those who owe a significant amount, debt management may be a smart idea, as it can reduce your monthly repayments to a more manageable sum.

Consider Debt Management

Lastly, if you are struggling with multiple debts that make it next to impossible for you to budget properly, then you might want to consider speaking to a professional financial advisor. Believe it or not, but there are actually several different options available to people in your situation which can reduce the amount that you are repaying every month. Not only will this ensure that you don’t reach the point where you owe more than you can possibly pay back, but it will also free up more of your income so you can avoid running up any more debts or arrears. While everyone’s situation will be different, it’s still worth speaking to someone to see what’s on the table for you.