If a loan for rental debt is required, it can generally be assumed that the applicant’s financial situation is currently not particularly good. It is, so to speak, 5 to 12, because the rent is one of the more than essential to be labeled expenses that can not be paid as last. Whether a loan is the right way to do it, you should think twice in advance.
When does a loan for rental debt make sense at all?
All in all, this question can hardly be answered, because every financial situation is different. Basically, however, before borrowing a loan, you should already be aware of how it will be repaid so as not to fall into the debt trap, which may cause even greater problems. So, once you’ve reached the point where the rent can no longer be paid, it might be better to go to a debt counseling service instead of borrowing a loan that is perhaps too expensive. Because this represents an additional monthly burden, which wants to be provided once.
Before a loan for rental debt is taken, it is essential to contact the landlord. This may be talked about and provides the tenant with installment payments of outstanding amounts. In principle, this can also be regarded as a loan for the rental debt, only the conditions in terms of interest and repayment are likely to be much cheaper than a loan from the bank. Here, no false pride should stand in the way of admitting one’s own situation, at least to the landlord. If rent arrears are not paid on time, termination without notice or even forced eviction may follow.
Ultimately, however, to ask for the reason for the rent arrears. If there is only a short-term liquidity shortage on the part of the tenant that will be overcome in the foreseeable future, it may be sufficient simply to claim the credit line in order to make up for the back rent payments. Here, however, caution is advised, because the interest rates on credit lines often exceed those normal installment loans by far. Disbursements are therefore only partially suitable as loans for rental debt and should be repaid as soon as possible.
Unemployment and low income, on the other hand, are more likely to be longer-lived and should not be balanced by credit. Here it makes more sense to inquire about government transfers that allow partial or full coverage of rental costs. A trip to the employment office can be helpful here. For this purpose, however, it is checked beforehand, whether the size of the apartment and rent are appropriate to the circumstances. So who resides in an expensive penthouse apartment, should rather think about a move, because this certainly can not apply for state benefits.
Short-term financing of rental expenses
On the other hand, if the rental debt is only the result of a financial bottleneck, other options may be considered as mentioned above. An expensive repair on the car at the worst possible time may already be sufficient to trigger such a bottleneck with otherwise good earnings. Depending on the amount, the corresponding loan for rental debt should be sought in order not to be burdened with excessive interest costs. Smaller amounts can be well financed by personal loans, which are generally much cheaper than a similar offer from the bank. In addition, the minimum amounts are lower, which is why no too high a loan must be taken.