When You Can’t Afford To Pay Rent

Estimated reading time: 10 minutes

Are you struggling to pay the rent? Learn how to tackle financial insecurity and manage rent without compromising quality of life.

Not everyone who struggles to pay rent wants to move up and up, but for many, it’s a reality they must face because they wrangle month after month with financial insecurities.

Money Choices Affect Daily Living

The biggest issue facing many Canadians is that rent in most cities continues to increase, along with the cost of living, while the minimum wage has not kept pace with inflation.

About one-quarter (3.3 million) of all Canadian households are precariously housed, living in housing that is unaffordable, over-crowded, below standard, or a combination of all three.

Poverty in Canada is high, with many Canadians struggling to make ends meet, even if they are friends, family, and neighbors with big houses and fancy cars.

You’d be surprised how many people who appear to be wealthy are actually house poor.

There’s a reason spending only 30% of your gross income on housing is imperative.

If you overspend, you face declines in other areas of your budget, such as food, transportation, clothing, and other necessities.

There are 35,000 Canadians are homeless on any given night. Over 235,000 Canadians experience homelessness every year with 5000 being unsheltered, 180,000 staying in shelters and 50,000 provisionally accommodated according to The State of Homelessness Report in Canada 2014.

Nearly one in five households experience extreme housing affordability problems, meaning they are low-income and spend more than 50% of their income on rent.

Little To No Pay Raise

I bet if you asked your closest friends when the last time their employer boosted their income, many would laugh at you or tell you that it’s non-existent.

If you’ve never asked for a raise before, do it. You have nothing to lose, especially if you arm yourself with all the positive reasons you deserve a raise.

I recall when I visited a former boss and asked him if he could increase my salary.

This was shortly after my wife and I were married, and he said yes.

My wife was the motivator in that situation, but had I not asked a simple question, I wouldn’t have had the couple of extra bucks to help pay for our financial needs.

Cost Of Living Increases Affect Everyone

Everywhere we turn today, someone wants more money, whether it’s the city for higher property taxes, rental increases, rising car insurance rates, increasing hydro and water costs, daycare expenses, grocery prices, or even gas to run your vehicle.

For example, the average cost of a bag of apples in Nunavut is $13.99, whereas in other parts of Canada, the price may be as low as $3.99.

Not everyone can slash their grocery budget to help offset the costs of other living expenses.

However, we must keep in mind that every bit helps.

That means targeting budget categories by stripping them to the bare minimum.

Even then, it’s a struggle for some people.

Residents in Nunavut spend 2x more on food then the rest of Canada $14,800 a year vs. $7300

Life can become dark when we focus on the negative aspects of a financial situation, especially when it seems like there is nowhere to turn.

Failure to have the money to pay rent is a massive stress that no one wants to face, especially when kids are involved.

Not only that, but not everyone has a job, or they may be unable to work due to health-related reasons.

According to an eye-opening report on basic statistics of poverty faced by Canadians, we can’t ignore older people who are struggling just as much as the younger generations.

These individuals may rely on financial loans from parents, banks, or government social assistance; even then, the help is very limited.

Getting caught up in the payday loan scheme is another dead-end avenue that some people feel compelled to walk because they have run out of options.

Nearly 15% of elderly single individuals live in poverty

Nearly 2 million seniors receive the guaranteed Income Supplement, and live on about $17,000 per year.

However, the most basic standard of living here in Canada is priced at $18,000 per year for a single person.

Outrageous Rental Prices

Renting a 2-bedroom apartment in a high-rise in the Greater Toronto Area is enough to make anyone cringe, with prices well over the $ 1,000 mark, plus utilities.

A friend of our family has a daughter who recently graduated from University and moved to downtown Toronto.

Her quaint 300-square-foot apartment costs her a whopping $ 1,200 monthly, plus utilities, and she still has a minimum 25-minute walk to work.

With two weeks to secure a place to live after being appointed to a career opportunity in her field of study with a Fortune 500 company, pickings were slim in her budget range, so she had to take what she could get.

This is the norm for many people, regardless of their income level.

You won’t believe the competition for rentals, especially when you must comply with a rental agreement, credit checks, and other financial insecurities that may force you out of the running.

This is her first apartment away from home, apart from living in the residence while attending University.

Although she loves her quaint little place, most people can’t even afford to pay rent of this caliber for such a small space.

Income vs Paying Rent On Time

Thankfully, she has a career that pays well, and she’s quickly learning to adjust her financial situation by adopting a minimalist lifestyle, budgeting, and living thriftily.

She cannot afford to drive or pay to even park a car in the building she rents from.

There’s also the need to save for emergencies, such as job loss, health issues, or personal situations that force someone to take time away from employment or resign.

Related: Why you need an emergency savings account

When kids are involved, and parents cannot pay rent, the hardest thing to do is make decisions about improving their financial situation.

Although some people ignore debt, it will only crawl back to haunt you if it’s not paid.

Sometimes, the struggle becomes real when families who rent expand and need to move to a larger space.

Finding an apartment with one extra bedroom can be costly compared to buying a larger house with a few hundred additional square feet.

Housing Options Are Not Always Optional

This doesn’t mean you have to live in filth, either.

No one should ever have to face living on the streets or in accommodations that are horrible for any human.

Sadly, some people are willing to pay rent if it’s cheap enough, even if the place is a hazard and falling apart.

The slumlords of Canada get rich, and those who pay rent on their properties suffer, many in silence.

We rented a room for a couple of years before buying our house, and the rent increased from $400 to $600 very quickly.

This was when we decided we no longer wanted to pay rent, not because we couldn’t afford it, but because, financially, it did not make sense to us, as we could put a down payment on our first house.

We worked very hard to save that money over two years, including both of us returning to school for a second time.

Renting a room is not always ideal; however, it can be a great option if it helps you achieve your financial goals.

We wouldn’t be where we are right now had we not stuck it out, living in a less-than-ideal situation.

We all have to do things we may not like, but if it will help us improve a situation, consider it temporary until you reach your goal.

Yes, there is one if you do one thing: BELIEVE.

Stay positive is what I’m trying to say.

Nothing has to be set in stone, so if you get down on yourself because you can’t pay rent, the likelihood of improving your financial standing with positive reinforcement is slim.

Struggling To Pay Rent Is Real

So what can you do if you can’t afford to pay rent where you currently are or need to move to another rental, but rent prices are too high?

I don’t have a solution for you; however, I have some tips to help guide you in the right direction.

It would be best if you did something before you find yourself in a dire situation or, even worse, homeless and on the streets.

That means reaching out and asking for help is just as important as lifting yourself and searching for ways to change your situation.

Starting April 1, 2016, Designated Communities receiving at least $200,000 in Homelessness Partnership Strategy (HPS) funding will be required to invest at least 40 percent of HPS Designated Communities funding in Housing First activities

Please don’t wait until it’s too late. Be a force with your finances from the start.

You may not think budgeting is essential, but if you’re not already doing it, start now.

You can download the same budget Mrs. CBB and I use for FREE. No strings attached!!

Too many Canadians are precariously housed, paying too high a percentage of their income on rent.

They are acutely at risk of becoming homeless.

Use the Food Bank or Community Kitchen

If you struggle to pay rent, you can access community kitchens for hot meals and the local food bank to stock up on necessities, including health and beauty, and baby items such as formula and diapers.

Cut Grocery Expenses

If you aren’t already utilizing all the tricks to save money for your food budget, now is the time to educate yourself on everything related to groceries in Canada.

I have an extensive library of reading materials on grocery savings that will surely help you get started on slashing this budget category.

Related: The Ultimate Grocery Shopping Guide in Canada

Slash Monthly Budget Expenses

Like the grocery category, it’s essential to eliminate all unnecessary expenses from your budget.

Slashing a monthly budget is a personal decision and can involve making adjustments to fit the amount of money you have to spend.

• Walk or bike to work.
• Use a pay phone or home phone instead of owning a mobile phone.
• Utilize the library to access free movies, music, and video games.
• Cook at home instead of eating out.
• Reduce or cut the extras such as alcohol, cigarettes, and drugs (talk to your doctor first).
• Rent a room instead of an apartment.
• Go on a spending freeze.
• Shop second-hand or get free stuff.

There are always ways to slash your budget, even if that means calling credit card companies and asking for a reduced interest rate.

Other ideas might be;

• Ask your boss for a raise
• Get a second or third job.
• Rent a room in your space. (Check with your landlord if you are renting.)
• Host an international student.

Downsize Your Rental Space

Giving up a rental, whether a townhouse, condo, house rental, or apartment building, to rent a room or a smaller space, or move in with family, can depress anyone.

This may be one of your final resorts when you struggle to pay rent even after you’ve chopped your budget.

Move To A Cheaper City/Town

Finding a new employer and relocating to a more affordable city may be a smart option if you can make the move.

Many people enjoy the small-town vibe and the close-knit community that comes with it.

Negotiate With Your Landlord

When your landlord comes knocking for you to pay rent and you don’t have any cash, you may ultimately face eviction for non-payment.

You can explain your situation to the landlord and see if they can offer a more affordable rent rate.

Doing so would allow you to stay or help with a catch-up plan to get you back on track.

If you can’t pay rent, your best options are to find extra income or relocate.

Start Charging Rent

If you have older kids who live at home and work, you may have to start charging them rent even though you dread asking them for help.

Look at it this way, though, you are helping them understand that life is not free.

Having your children pay for room and board is part of financial parenting, a practice that will continue even when they finally branch out independently.

Apply For Low-Income Housing

Although the waitlist may be long, housing is an excellent option for those struggling to afford rent.

I’ve seen some of our area’s housing options, and they aren’t so bad.

The yards are a decent size, as are the living accommodations.

A friend of ours, a single mother of two children, works and lives in subsidized housing.

She pays a reduced rent geared to an income of about $200 a month, and they help with her daycare costs.

Conclusion – You Can’t Live Rent-Free

Relying on the government is not always a fast and straightforward solution, as even housing waiting lists are very long.

Housing problems are a significant issue in Canada, and until we address them head-on, they will continue to escalate.

We can’t keep putting a band-aid on top of another without addressing the underlying issues and implementing initiatives to show progress.

Ultimately, the best initiative is the one we take ourselves, doing whatever we can mend or reform financial situations on our own.

Discussion: Have you ever struggled to pay rent?

Share your story below in the comments, and any tips to help those in the same situation.

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