First steps
- Talk to your landlord or agent early. Tell them what's happened and how you plan to catch up. Many will agree to a payment plan.
- Contact your state's tenants' advice service, which can explain your rights and help you negotiate.
- Ask your state housing department about rent assistance. Most states help people on low incomes who are behind on rent.
- Call the free National Debt Helpline on 1800 007 007 to work out a plan for all your bills.
Using a personal loan for rent arrears
A rent arrears loan is an ordinary personal loan used to clear the rent you owe. You repay it over a year or two, with interest and fees, so it only helps if you can afford the repayments on top of your ongoing rent.
Some lenders can pay out within a day or two. Lenders must check the loan suits you and that you can afford it, so they'll look at your income, spending and credit history.
Pros and cons
- It can clear arrears quickly and stop them growing.
- It's usually cheaper than a credit card cash advance or a payday loan.
- It adds a new debt, and rates can be high if your credit is poor.
- Missing repayments adds fees and can damage your credit score.