Debt Review & Lease Agreements

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The Debt Review process is a frustratingly slow process – debt counselor / credit providers and the consumer must all provide input.

A person under debt review cannot apply for any credit, but they can enter into a new lease agreement. This is high risk, as the applicant probably already feels over-indebted. On the other hand the applicant might be trying to cut costs by renting something cheaper.

TPN suggests, the landlord or estate agent phones the debt counselor to ask “What the applicant through the debt counselling process has budgeted for the monthly rent?” The debt counselor will be able to give you the budgeted rent amount – you can cross reference back to the rent applied for to ensure affordability.

Also a good idea to have someone co-sign or stand surety.

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  1. When you rental equipment you keep money secured that may be used for other buys. Since rental expenses are generally small in comparison to frequent loan instalments, you do not have to pay out as much every month.

  2. Leasing is a good option as long as one is on the move either due to work transfers or simply because one is looking for a change of metropolis. It is a viable option if one doesn't want to think about paying a heavy sum of money as down payment and is comfortable spending a part of the annual rent as security deposit without the hassles of preserving or upholding the house. The option of leasing also allows aspiring greater than what fits the budget.

  3. Hi Michelle I read your post on someone who is under debt review and I am dealing with a case right now that I need your advise on: The prospective tenant's director has offered to deduct the rent from tenants salary and pay it directly to the landlord (unmanaged property) so please have a look at the contents of the letter from his company and let me know whether you would consider this a form of Surety - if not then I suppose I should ask his boss to co-sign the lease?
    "Dear Brian
    We confirm that whilst Carl (ID No: ) is in our employ, we would be willing to deduct the rental payment from his salary and to pay this over to you on his behalf, before the first day of every month. We understand that he is desirous to enter into a rental contract with you for the above property for the period starting from 1 March 2014 to 28 February 2015.

    Please confirm if this is acceptable to you. Please also confirm your company and banking details so that we can arrange for the payment by EFT"

    Cheers Brian

  4. Good ideas very helpful. I was able to fill out a form online yesterday ( you might want to try. It was easy and it works for me.