In a Nutshell

Eviction is a standard process in the United States, but it doesn’t happen overnight. All renters are notified of the intent to evict ahead of time and have ample time to fix the situation. Knowing your options, including emergency rental assistance or emergency loans, is important during this stressful time.

Being unable to pay rent can be scary, but you aren’t alone. Since the expiration of pandemic-era protections, 653,100 people have become homeless. In addition, 22.4 million people spend over 30% of their income on rent, the typical affordable rent threshold. This means millions of people, like yourself, are over their heads in rent payments.

The thought of eviction can be terrifying, so it’s critical to understand your options, communicate with your landlord, and get emergency loans for rental assistance to remain in your home.

How Does the Eviction Process Work?

The good news is that in most states, landlords must give tenants advance notice of the intent to evict them. The notice should include the reason and what the tenant can do to rectify the situation. For example, if you haven’t paid rent, you may be able to pay the past-due amount and remain living in the rental unit.

Landlords usually send this as a Notice to Quit. The notice should include the exact timeline for eviction if the tenant doesn’t pay the past-due rent. If you don’t fix the situation by the timeline, the landlord must get a court order to take further action, including instructing you to leave.

The eviction process doesn’t happen overnight, but the faster you deal with the issue, the less stress it may cause for you and your family. Landlords cannot kick you out of your house in just a day, but they can take legal action against you, which could make it more complicated to find a solution.

What to Do If You Get an Eviction Notice

Getting an eviction notice can be overwhelming and scary, but don’t ignore it. It’s not going away!

If your landlord hasn’t filed an eviction lawsuit yet and you want to stay in the property, try negotiating a repayment plan with him. This may include partial payment or tacking the past due amount onto future rent payments to get current. Believe it or not, many landlords would rather receive payments than pay court costs and deal with the hassle of eviction.

If you don’t have the funds, you have options. For example, your state may offer assistance to prevent you from eviction while you locate rental assistance. You can also apply for an emergency loan that may provide funds to pay your current rent.

If your landlord filed an eviction lawsuit, try to get legal help. It may sound crazy, if you can’t afford your rent, how would you pay for a lawyer? However, you may qualify for free legal assistance. so it’s worth trying so you don’t lose your place to live.

Emergency Loans for Rental Assistance

If you want to get current on your past-due rent, there are a few options to consider to get funds fast. If your state doesn’t offer an emergency rental assistance program, turning to emergency loans for financial assistance is the next best step.

Here are Some Common Options to Consider:

Title Loans

If you own a car without outstanding loans, you may borrow against the car’s value to get funds quickly. Car title loans are high-interest loans for loans of $500 to $50,000 and terms of up to 36 months.

Title loans require monthly payments, but many online lenders have an online application process with a same-day approval decision. If approved, you may receive emergency funding as soon as the same day if you submit the necessary documentation by the lender’s cutoff time. This can reduce the stress the threat of eviction causes.

Keep in mind that title loans are secured loans because they use your car as collateral. If you miss a payment, the lender can repossess your car. Because of their high interest rates, we recommend using these loans just for emergencies when looking for loan assistance. 

Online Installment Loans

Online installment loans are loans with fixed interest rates and monthly payments. They may also be called personal loans. Typically, local banks and credit unions have challenging qualifying requirements for those struggling to pay rent.

However, online installment loans may have more flexible guidelines than local banks and credit unions, offering options for people with bad credit. You can usually find loans with different loan terms, keeping your loan payment affordable.

Keep in mind, however, that the longer you borrow the funds, the more interest you’ll pay. Lenders typically also charge higher interest rates on longer-term loans because of non-payment risk. You may find options with credit scores as low as 550 using a loan aggregator online. Compare your options to see which makes the most financial sense.

Payday Loans

Payday loans are another option that offers quick funding, but they, too, have high-interest rates. Payday loans are for much smaller loan amounts, usually less than $500, because they are an advance on your next paycheck. The average APR on a payday loan is 400%, and if you can’t repay it on your next payday, the interest and fees keep increasing.

Payday loans may provide a temporary solution when you miss one month of rent payments, but if you are more behind, you should consider other loan options.

Pawn Shop Loans

If your past due rent payment is for a small amount, or you are short only a little bit, a pawn shop loan may provide emergency funds. To get a pawn shop loan, you must give them something valuable. The ‘lender’ will then give you 25% to 60% of the asset’s value. They charge up to 240% in interest and give you a short time to repay the debt. If you don’t repay it, they sell your collateral.

Rental Assistance Resources by State

During the pandemic, there were many opportunities for emergency rental assistance programs, but many have since closed or expired. However, some programs remain open in many states. Although it may take longer to get the money for rental assistance, these options are worth considering to avoid taking on another liability.

Should you Borrow Money to Avoid Eviction?

Borrowing money to avoid eviction can feel controversial. How will you cover the loan payment if you don’t have the money in your bank account to cover your rent payments?

The key is determining the reason you couldn’t pay rent. If it’s a temporary situation, such as a sudden illness or job loss, but you’ve since found a job or returned to work, a loan can help you get back on track. But, if you can’t afford the rent because it’s too high for your income, you may want to consider other options.

For example, you may want to start a side hustle or a part-time job to increase your income. This is especially true if your rent exceeds 30% of your income, making covering any other financial obligations challenging.

If you consistently cannot afford your rent, it may be time to look for more affordable rental housing that fits within your budget.

Final Thoughts

Asking for financial assistance when you can’t pay rent or want to avoid eviction is common. Don’t be embarrassed to tell people about your situation and ask for help! Life throws everyone curveballs, and we all need support at times. Friends or family may be in a position to help you, if not there are financial support opportunities available in most areas. 

If you can afford a loan and your situation of not affording rent is temporary, consider loans like a title loan or personal loan. Contact us today to learn about your options for car title loans and see if they are feasible for your situation.