Take action early if you face debt problems, experts say

Experts say that you need to act sooner rather than later if you’re facing debt problems, especially as rent arrears could see you having to find a new place to live – and in a hurry.

With the economy in its current state, many Brits have been encountering serious financial distress that has seen them sometimes having to make the hard decisions between paying their rent or keeping their family fed. ¬†Official figures say that, during 2012’s second quarter, more than 100,000 Brits that rent their homes were in ‘severe arrears’ thanks to the affects of jobs losses, wage freezes, rising living expenses, and unsustainable debt from other sources, such as payday advance lending.

Tenants who owe three months’ worth of rent or more are considered to be in ‘severe arrears,’ and the new figure represents an increase of 8 per cent from the first quarter of 2012. Additionally, research has found that the number of Brits in severe arrears has also gone up by a startling 24 per cent over the past 12 months.

Experts say that you need to discuss things with your landlord before you miss a payment or decide to take out instant cash loans from a payday loan provider in order to make up the shortfall. While the thought of informing their landlord that they can’t make the rent will send chills down the spine of anyone, it’s better than simply not paying your rent without any warning – and it prevents you from spiraling even further into debt by taking out a payday loan that’s incredibly expensive to repay.

Your landlord might surprise you: if you’ve been reliable up until now, they’re more likely to work with you instead of trying to find a new tenant to take your place. You may be able to negotiate a lower monthly rent or work out an agreement for a repayment plan with your landlord if you bite the bullet and tell them what to expect.

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