Average rents have now risen to £713 per month and are set to increase further. We consider what options you have if you are struggling to pay your rent and other debts.

During August according to figures from LSL Property Services the average rent rose by 2.1 percent bringing the average monthly cost of renting to £713. If you live in London, rent costs are even higher with a typical monthly rent costing £1025.

Rents continue to rise because of a rising demand for rented property as more and more people struggle to get a mortgage and buy their own home.

The problem is that the majority of family incomes are remaining static or even at risk of falling and so more and more people are finding it difficult to keep up with their rent payments. If you are finding that your are struggling financially after a rise in your rent we explain your options?

Can you cut other expenses in other areas?

For many the way to deal with rent rises will be to budget more carefully and perhaps cut back other areas of their monthly spending.

However increasing rent costs become particularly serious if you are unable to cut back because you are also struggling with other debt problems such as being unable to pay your credit cards and personal loans.

Where this is the case you may well be tempted to pay your credit card debts before your rent meaning that you start getting into rent arrears. The main issue with this is that getting into rent arrears can result in very serious consequences as you could put yourself at risk of being evicted from your home.

Need help to resolve rent arrears? Give us a call on 0800 077 6180 or complete the form below to speak to one of our experts

Could a Debt Management solution help?

If you find yourself at risk of missing your rent because of other debt problems you should consider a debt solution which will enable you to reduce the amount you pay to your debts and free up the money you need to pay your rent.

The two main debt solutions which will help you reduce the amount you pay to your debts and leave you with enough money to pay your rent are known as a Debt Management Plan (DMP) and an Individual Voluntary Arrangement (IVA).

The two solutions work in different ways and are suitable in different circumstances but they are similar in the fact that both allow you to reduce the payments you make to your personal debts such as your credit cards and loans.

By reducing these payments to an affordable amount you can free up enough money to be in a position where you can afford to pay your rent in full.

What of you are already have rent arrears?

If you are already in arrears with your rent, it will be important to come to an agreement with your landlord to repay these as well as maintaining your ongoing monthly payments.

A DMP or IVA can help you with this. Both solutions are based around your monthly living expenses budget which is set aside out of your income before agreeing how much you can pay towards your debts.

As part of your living expenses budget you can include an amount for repaying any mortgage arrears you have. Once your arrears are paid, this money will then be freed up and can be redirected towards paying your debts

Rents costs are likely to keep rising

It does not seem likely that it will become any easier for people to secure mortgages and buy their own property in the near future. Because of this the demand for rented property and the cost of renting will probably continue to increase.

Managing your money carefully to ensure that your rent is paid on time is therefore likely to continue to be a critical skill for you to acquire. However if you are already struggling with debt problems you may not be able to cut back and it will be very difficult for you to keep up with increasing rent payments.

If you find yourself getting into arrears it is important to get professional debt advice and consider a debt solution which will help.

Privacy Policy
Your information will be held in strictest confidence and used to contact you by our internal team only. We will never share your details with any third party without your permission.