Eliminating rent arrears caused by tenants using credit to pay the rent
Research conducted by the Debt Advisory Centre has highlighted an alarming trend of UK adults borrowing money via credit cards and payday loans to pay their rent and mortgages. The survey found that 6.5% of adults have used some sort of credit or loan to pay the rent or their mortgage, what is even more worrying is the fact that this figure has double since August 2013.
The research also delves deeper as suggests that men are twice as likely as women to use credit to meet their rent or mortgage commitments and the figure rises to 10%, one in ten UK adults aged between 18 and 34.
Spokesman for Debt Advisory Centre Ian Williams said: “There is nothing more important than the roof over your head, so to learn that so many people feel they have to rely on credit to pay their mortgage or rent, and that this figure has risen, is extremely troubling.”
With credit card interest rates at around 30 per cent per annum and payday loan lenders charging thousands of per cent per year, it isn’t long before tenants relying on credit to pay their monthly rental commitments are able to pay and fall into arrears.
With the trend of tenants using lines of credit to pay the rent on the increase how can landlords across Cardiff and South Wales eliminate rent arrears?
An easy way is to contact Rent Guarantee Cardiff to discuss how we can guarantee your rental income ensuring the following:
- You get paid your rent on the same day each month whether the tenant has paid or not
- You receive your rent on the same day each month whether your property is tenanted or vacant
Rent Guarantee Cardiff is a specialist Cardiff Lettings Agency that provides all the same services as a traditional Lettings Agent but with no set up fees or management fees and we can pay up to 90% of the open market rent.
To discuss how Rent Guarantee Cardiff can offer you up to 90% open market rent and increase your rental income by at least 20% compared to a traditional Cardiff letting agent, complete the form below: