Rent Arrears Loan
Need a small loan to tide you over? Savvy has you covered.
Falling behind on rent can leave you in a tricky situation. You don't want it to get out of hand, but is there a way to pay your landlord now and then manageably repay that debt over time? Find out about rent arrears loans and whether they're the right solution for you.
What is a rent arrears loan?
A rent arrears loan is money you borrow to clear your rent debt. They provide you with rapid access to the required funds and allow you to immediately pay off the rent you owe. You can then repay that debt in a more manageable way over a number of months. If your rent is in arrears and you don’t currently have the funds to pay it, one of the quickest and easiest options available is an instant cash loan. This is a small loan available from online lenders that provides between $2,050 and $5,000 of quick funding for urgent expenses.
“Rent arrears” effectively means your rent is late. Arrears is a technical, legal term for something being overdue or after the fact. Workers are often paid in arrears, meaning they’re paid after they’ve completed the work (or at the end of the pay period). When it comes to debts such as rent, it’s not such a good thing.
How can I get a rent arrears loan?
The best place to start applying for an instant cash loan to clear a rent arrears is by jumping online. Instant cash loans are available from a variety of online Australian lenders, and the process of applying and getting approved is fast and simple. For example, if you apply for an instant cash loan on the Savvy website, our five-minute online application can give you 24/7 access to some of Australia’s top online lenders, with 60-second pre-approval for a rent arrears loan up to $5,000.
As part of that application, you can also choose the period over which you’ll repay your loan. You can decide whether to pay your loan off quickly, with minimum terms of just 16 days, or opt for a term as long as two years. This enables you you to spread a large overdue rent bill out over a longer time if you wish to, paying it off progressively.
Savvy’s network of lenders allows you to choose your loan term. This means that, as a borrower, you get the choice of lower repayments over a longer time or paying more each time to clear the debt quickly, meaning you pay less in fees overall.
Why apply for a small loan with Savvy?
Frequently asked questions about rent arrears loans
Top tips for avoiding getting into rent arrears
Rent should be one of your first priorities – having a roof over your head isn’t a secondary consideration. Don’t make plans that involve paying rent late, as you’re bound to find yourself in crisis and in need of a laon to pay your rent.
It’s always helpful to sit down and draw up a list (or a spreadsheet) of your expenses, income and how often each of them gets paid. Be generous with estimates. Work out what you’ll need to cover your costs across the year and make sure you’re setting aside enough of each pay check to cover that cost.
It’s often a great idea to have a second bank account set up – perhaps a purely online one that you don’t have a debit card for – where your rent and other expenses are transferred a day or two after your pay hits your account. That way you know your rent is safely set aside, and you can’t accidentally spend it by losing track of everyday expenses. This is a little like having a rent-tin, except it’s easier to electronically transfer the money to your landlord.
Have a calendar – whether it’s a big paper one on the wall or an online Google calendar that sends reminders to your phone – and have the due dates for bills and rent in it. Even if your rent is paid automatically (which can be a good idea), it helps you keep track of when that’s happening and check in that the finances are there and ready to go.
If you’re getting into trouble with your rent, it’s always a good idea to talk to your landlord or land agent. It might feel like an uncomfortable conversation to have, but they can’t help if they don’t know the situation. People generally respond better to a debt not getting paid if they know what’s going on and understand the reasons for it.
If you’re regularly finding yourself in rent arrears, it’s worth considering if you can move to more affordable accommodation, such as a smaller house or a more affordable location. While it can cost money to move, you’re generally a lot better off getting a short-term loan to help you lower your expenses long-term (by moving) than having to borrow money just to make ends meet.
Helpful small loan guides
The information on this website is of general nature and does not take into consideration your objectives, financial situation or needs.
For loans between $2,050 and $5,000, the APR is between 21.24% (minimum) and 48% (maximum) per annum. Comparison rate of 65.4962%. Minimum term is 16 days and maximum term is 24 months. The cost of the loan is a $400 establishment fee and monthly interest charged on the amount borrowed. For example, a loan of $3,000 over 3 months with an APR of 48%, (comparison rate of 65.4962%), will have an establishment fee of $400, monthly repayments of $1,225.20. Total repayments of $3,675.60 and total interest payment of $275.60.
Warning: A comparison rate indicates the true cost of a loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.