Thursday, May 26, 2011

How Renting Can Help You Get Out of Debt

Renting an apartment can help you get out of debt and give you the mobility necessary to find a better job. If you are burdened with debt from credit cards and payday loans, you can free up extra cash each month to pay down debt by downsizing your living arrangements. Renting offers several cash flow advantages that homeownership does not have, like no maintenance costs. If you find you need to free up cash to pay down debt, one of the biggest ways to free up hundreds instantly is to move to a cheap apartment.


Renting is Temporary

A lease is usually only one or two years, making your move to a smaller place temporary. However, during that time you can save quite a bit of money and use that to be able to pay off your debts. Once the debts are paid off, you use the extra cash flow generated from paying off your debt to build a down payment for a home.


Rent an Apartment, Not a Home

If you rent in an apartment complex, you have no lawn care, no maintenance fees, and usually some nice perks like a community pool. If you rent a home, you will still have to do the lawn and not have any extra perks. Keep your lease for as long as possible to avoid rental hikes and still be able to move reasonably soon if a better job offer came along. Take the difference between your old place and your cheaper digs and apply it to your debt repayment plan. With hundreds more going towards your debt, you can get out of debt much sooner than if you insist on buying a home or getting a large apartment. Housing is one of the most expensive items in a budget, but it can also be used to quickly and effectively generate hundreds of dollars in extra cash flow by downsizing.

2 comments:

Sam said...

Interesting post on renting vs owning. Home ownership does come with a whole mess of up keep that you often can't budget for. Great blog.

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manhattan movers said...

Renting is a good option if you're not ready to buy a property yet. It also helps you to be flexible in finding a job.