Over the past few years demand for rental property across the UK has driven rents to an all time high. By the end of 2012 the average private rental payment outside of London was £750 a month.

The increasing cost of paying the rent together with other increases in the cost of living is meaning that more and more people are getting into arrears. In December 2012 the total figure for rent arrears was around £326m.

With incomes flat or falling it is therefore no wonder that increasing numbers of people are finding themselves struggling. We explain the options that are available to you if your rent is in arrears or at risk of getting into arrears.

Try to increase your income to better pay your rent

You may be thinking that this is possibly the least helpful thing you have read recently regarding your rent arrears issue. Of course it is almost impossible for most people to increase their amount they earn at least in the short to medium term. However there may be other ways to increase your income.

For example there may be benefits that you are eligible for but are not yet claiming such as housing benefit. You may be able to claim housing benefit even if you are working if your income is particularly low. If you are already in receipt of other benefits then you might also be eligible for housing benefit.

If you are not claiming other benefits such as child tax credits if you have children then you should investigate the possibility of claiming these as well. Increasing your income by even just a few pounds a month by successfully claiming for the benefits you are entitled to could prevent you getting into or further into rent arrears.

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Try to make savings elsewhere to free up cash for your rent

If you are struggling with rent arrears one of the most important steps to take is to review what you are currently spending your money on each month. Go through your living expenses with a fine tooth comb to see if there are any areas where you can reduce expenditures or cut back.

Take a look at things like your mobile phone contract or sky package. You could also consider switching your utility provider however the saving in this area may not be significant. You might find that you can save a lot by just cutting out services you can live without.

Could you share a lift with someone you know you goes to work in the same direction as you, and/or cut out using the car all together for journeys where you really can walk.

BMD Tip: When you are looking at areas where you can make savings beware of trying to cut back on things that you cannot do without. You should resist the temptation for example to cancel things like your home insurance.

Reduce payments to non priority debts

If you have exhausted all the options for increasing your income and reducing your living expenses but you are still worried that you will not be able to solve your rent arrears problems the next thing you will have to consider is how much you are paying towards your other debts.

If you are have debts such as personal loans, credit cards, store cards and even pay day loans the payments you are making towards these could be seriously eating into your income. However you should not be prioritising debts like this over and above your rent.

The fact is that if you do not pay your credit card on time your will not be at risk of being evicted from your home. However if you do not pay your rent and get into rent arrears you are at risk of eviction. The question is of course how do you reduce the payments towards your other debts if you have not got the cash to pay them off?

The answer is you need to consider a debt management solution. For example an  Individual Voluntary Arrangement (IVA) or even Bankruptcy could be ideal solutions for you as they will enable you to reduce the payments you are making to your non priority debts and thus free up the cash you need from to make sure your rent is paid.

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