If you are having problems keeping up with your home rent payments we ask whether you could use an Individual Voluntary Arrangement to help solve the problem.

An IVA is used to reduce the payments you make to your unsecured debts such as credit cards and personal loans. It makes these easier to manage so they can be paid off in a sensible period of time. Ongoing rent payments are not an unsecured debt and t therefore these payments cannot be included directly.

However the Arrangement can be a perfect solution to ensure that you are able to make your rent payments in full and on time every month because reducing the payments you have to make towards your other debts will free up the cash you need to allow you to do this.

How can an IVA help you pay your rent?

One of the key reasons that you are struggling to pay your rent is often that you have other debts which are taking first priority over your cash.

It is easy to get into the position where you are paying other debts before your rent because these are the ones which seem to shout the loudest and may well add additional interest if they are not paid.

However, this approach is ultimately floored you because if you do not pay your rent you could risk being evicted from your home. This would not happen if you do not pay your other debts.

Using an IVA will help you re prioritise how you use your monthly income to make sure you always have the cash available pay your normal household living expenditures including your rent.

Do you want help to start an IVA? Give us a call on 0800 077 6180 or complete the form below to speak to one of our experts

How to manage your living expenses budget

The first step when implementing an IVA is to work out your living expenses budget. This budget includes all of your priority expenditures including your rent.

Once your living expenses are calculated and paid for each month your debt payments then are based on any remaining income you have left. This means that your unsecured debts will end up receiving a smaller payment each month but your living expenses including your rent are protected.

In this way the arrangement will free up cash by reducing the payments you make to your other unsecured debts to ensure you have enough to pay your rent and other living expenses.

Can you use an IVA to repay existing rent arrears?

If you have been struggling to pay your rent for a few months, you may well already have some arrears. Rent arrears cannot normally be included as a specific debt in an IVA. However the arrangement will still ensure that any rent arrears are repaid.

When you are calculating your living expenses budget, rent arrears are treated as a priority debt. A specific amount is therefore included in your budget to allow the arrears to be repaid in a reasonable period of time.

BMD Tip: If you have already moved out of the property where you owe rent arrears this debt can then be included in an IVA. You may also be able to include rent arrears for your current property in the Arrangement if you are renting from your local Council or Housing Association.