Are you worried about your rental or property options while you are under debt review? Debt review can help lessen the burden of debt repayment, but it can sometimes feel restricting when you want to pursue other financial prospects. It is true that while you are under debt review, you should aim to avoid taking on any further expenses that could add to your financial responsibilities. The purpose of debt review is help you manage your debt and debt repayments until you are debt-free. By adding new expenses to your monthly bills, you are slowing down this process and likely making it harder to remove debt. However, some expenses are necessary and cannot be avoided, even while struggling with existing or prior debt. Such expenses could include property rental, for example.
Can I rent or buy property while under debt review?
While under debt review, you are not able to take out any new loans. This means that buying property is not a viable choice when under debt review. But what about property rental? What happens if your current home lease is about to expire, or you have other valid reasons for seeking a new home rental? The good news is that being under debt review will not prohibit you from entering a rental contract or lease agreement for personal homes. Debt review itself is not a credit agreement, which means that there are no legal stipulations if you want to enter a lease agreement while under debt review. Landlords and property rental agents are not permitted to deny you an opportunity to rent based on your debt review status. There are, however, still some concerns to take into account when applying to rent property while under debt review.
How to maximise your rental application to avoid your debt review status affecting your chances
Landlords and rental agents will often do a background check of your financial situation when you apply for a lease, which will show your debt review status. This may cause them some concern and reduce your appeal as a prospective renter in their eyes. To help them see you as a viable candidate for the rental, ask your debt counsellor to provide them with a proof of budget to indicate that you are able to afford the rental amount. On that note, when house-hunting, make sure to aim for budget-friendly options, even if that means you may have to downsize or relocate to a different area code. Once you are debt-free, you will have the financial freedom to explore more desirable rental options, or perhaps even apply for a home loan. Contact One Debt today for assistance in rental agreements while under debt review.