Rent and How to Deal With It
Moving out of your parents' home or living on your own for the first time and renting an apartment is a major step. It's one of the many milestones in becoming an adult. Paying rent can be a huge bill though, and it's important that you're prepared to take on that financial responsibility. It's equally important to have a solid budget plan in place and recourse if you find yourself in need of help paying rent. From figuring out what you can afford to how to pay rent with a credit card, we've got the details you need to know to avoid any unexpected challenges.
How Much Rent Can You Afford?
Before you even start looking at photos of apartments online, you need to figure out how much you can reasonably afford each month. If your parents have been paying the rent or mortgage your entire life, you might not have an idea of how much people pay for renting an apartment or home in your area.
In general, your rent should be no more than 30 percent of your monthly income, notes Realtor.com. So, if you make $1,200 per month working part time while going to school, you shouldn't pay more than $400 for rent. Many landlords have strict income requirements to ensure that their tenants can make the payments.
If you're working with a $400 budget, you won't find many options for houses or apartments on your own. However, you can make it work with roommates or a co-signer. If you're determined to live on your own, your parents or another trusted individual could co-sign the lease with you. This means if you are unable to make the rent payments, your co-signer will be responsible for paying them.
Finding a roommate will split the cost of renting an apartment along with the utilities which will lower the overall amount you have to contribute. It's important that all roommates living in the house sign the lease. Otherwise, you'll be the one on the hook for rent payments if your roommate decides to suddenly move out, and you won't have any legal recourse.
What Happens If You Can't Pay on Time?
Renting an apartment will perhaps be the biggest monthly bill you've ever had. You need to create a budget to ensure that you can pay rent on time every month. Paying rent late might leave your landlord with little options other than charging you additional fees. If you wait too long, you might even face eviction. If you're renting an apartment from a large property firm, you may have instructions for how to pay rent with a credit card. Because of interest and fees, you should only use this option for emergencies. You might also start looking into online loans and personal loans, which could provide extra funds to carry you through.
Getting Help With Rent
Things happen, and you might find yourself short on money when rent is due. If you need help paying rent, you might consider personal loans. These are typically available with lower interest rates than credit cards. Many online loans have quick processing times, so you can get the cash by the time rent is due. However, it's important to plan in advance and communicate with your roommates and/or landlord before you get too far behind. If you're wondering how to pay rent with a credit card, it's best to check with your landlord and try to use one with the lowest interest rate.
Renting an apartment and getting set up in your new home isn't a cheap endeavor. If figuring out how to pay rent with a credit card doesn't sound appealing, consider online loans and personal loans like we offer at CreditBox, which could offer the financial relief you're looking for. In addition to hassle-free applications, we also have a great referral program that lets you earn extra money, which comes in handy for paying rent, buying groceries and hanging out with your friends.