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It was in the early 1930s that affordable or public housing was first developed in America. It was meant to address financial or “housing” inequalities by offering property to people of all income levels.

The early developments appeared to assist with preventing homelessness but soon it became associated with poverty. Landlords lost interest in maintaining low cost housing and many properties were neglected. This neglect also provided an opportunity for crime to become rife and soon affordable housing was associated with being poor, living in bad neighborhoods, and simply being “bad tenants.” Today, Section 8 housing applicants are often treated differently from renters who don’t rely on the housing voucher program. Such renters are seen as high risk despite many Section 8 tenants earning an honest living and paying their rent on time.

Because of the years of affordable homes being associated with poverty and crime, many people today still believe that individuals and families who rent low cost apartments will be bad tenants. Not only has this made it harder for families to rent but it also leaves renters feeling embarrassed about their housing situation.

The current stereotype is made worse by governmental housing agencies and developers who don’t invest in the value and the security of low income or low cost housing. Many properties are in high crime areas and close to public schools synonymous with dropouts and poor education standards. The good news is that properties to rent do exist in which the needs of the community are prioritized and landlords do their best to assist tenants with affordability and decent housing.

What Affordable Housing Looks Like Today

There’s no denying that affordable rentals have made a difference in the lives of individuals and families, but the high cost of living and rent without increases in monthly wages have made it difficult for individuals and families to afford their homes. As property prices continue to climb, it has also become harder for many people to afford to buy a house or get approved for a mortgage. This has led to a rise in the demand for affordable housing.

Federal Government has made funding such as rent assistance available to prevent homelessness because more people are being evicted due to non-payment of rent.

Despite the government’s best efforts, campaigns such as rent assistance simply don’t address the 7 year-long waiting lists for public housing, the widespread homelessness, and the struggles that many experience trying to rent an apartment based on their earnings.

More developments are needed with decent property development to firstly help those who need a home they can afford and secondly to combat the stereotype that affordable housing is only associated with crime, extreme cases of poverty, and problematic tenants.

It was 2020 that saw a rise in spending across the real estate market only for the question of housing affordability to come into play in 2021. While many believed that the US housing market was set for yet another crisis this year, the trend has steered towards stability in housing prices and a sigh of relief for many who could no longer afford their own homes. It is believed that contrary to soaring market prices just last year 2021 could be the period of affordability and a better time to purchase a house. While a  drop of only 0.2% was reported in the cost price of family homes, it is still a good indication of a slower rate across property values.

The change in property rates is also welcomed by the rental housing market as more people are trying to cover their rent during the volatile times of the COVID pandemic and uncertainty in the rental market. For those who were renting and looking to purchase a house in 2020, the sudden jolt in single family home prices meant it was impossible to find value for money. Properties were over-priced and for those who bought during the highs, the real value of the market is going to be reflected in the next couple of months. This doesn’t mean that property prices are going to drop to an all-time low or even reach the levels it was at prior to the pandemic but should rather stabilize without a spike in overall value.

What this means for future homebuyers is that bidding wars and the high competition to purchase property should subside. This trend is not only related to economic pressures and global markets but also a slower progression of home buying across the country. With a lower demand for houses to buy, there is less need for sky-rocketing market prices. More people have been unable to buy homes in 2021 because of affordability issues. One cannot look at the housing market without considering the effects of the pandemic. A greater number of people have lost their jobs or received cuts in their paycheck making it more challenging to afford the property. In the US, there is also a lack of affordable housing which has left many people living paycheck to paycheck. The Federal Government has had to issue rent protection strategies to assist individuals and households against evictions during COVID-19 lockdowns and restrictions. The situation is believed to improve over the next few months as more people return to work and the economy slowly reopens.

To assist more people during challenging economic conditions, low cost housing offered by government and private developers should address the growing need for affordability. With around 4.8 million people in the US dependent on housing assistance from the U.S. Department of Housing and Urban Development (HUD), it is imperative that the current market normalize and provide all persons better opportunities to afford to buy a house and provide for their future.

Credit makes the world go round! In today’s tough economy, positive credit can go a long way to getting what you need and that also means securing your finances. Because credit has become the standard used by employers, banks, credit providers, and landlords to assess your affordability. When your credit is negative or considered “bad” it limits what you can apply for and where you can get approved for things like renting an apartment or getting approved for a personal loan.

Fortunately, negative credit doesn’t mean the end and there are ways you can rent an apartment despite bad credit.

What is Negative or Bad Credit?

Your credit represents your financial history which includes your current monetary status, your past spending habits, and your ability to make payments on time. It is all about determining your debt management practices.

Credit is indicated by a number or score called the FICO score. A good credit rating ranges from 670 to around 739 while a negative credit score starts between 580 and 669. A really low score is between 300 and 579.

What are My Options with a Negative Credit Score?

When you have a negative FICO score, you may feel that your options are very limited when it comes to financial pursuits. Can you take on a loan, what about applying for a mortgage? Although poor credit can put some plans on the backburner, it does not mean that you can’t pursue your financial goals.

The way to repair bad credit is to start working on it as soon as possible. Start paying what you can afford every month to your credit card or outstanding loan. The longer you can sustain a pattern of good financial habits, the better your financial standing.

Getting Approved for an Apartment

Whether you are renting for the first time or you are looking to move to a new apartment, if you have outstanding debt and a compromised FICO score, it can prevent you from getting approved.

There are credit repair steps to get approved for apartments and it starts with debt management and finding the right apartment to rent!

You can apply for a second chance apartment. These types of apartments focus on renting to applicants with a negative credit rating and an affordable income. Rental prices are also considered fair to allow you to work on your credit and save for a future apartment or buy your own home.

The best way to fix credit is to work on it every week and every month. Create a plan of what you need to do to get your finances back on track and you could achieve your financial goals in a matter of months!

With rental rates on the rise and the cost of living to increase, we are relying more on our credit and racking up debt. Then we find ourselves in a difficult position where we simply cannot keep up with the debt and our payments are late.

Finding yourself with a negative credit rating is not something to feel embarrassed about. It can happen to anyone at any stage of life, but what you can do is learn how to get out of the grip of bad credit. We look at credit rebuilding steps and why it’s important to work on your debts and your financial future.

Why You Should Work On Your Credit

It’s easy to get into debt but not that easy getting out of it! No matter the reasons for bad credit, there are more reasons to work on it and have peace of mind. The problem with looming debts is that it prevents you from pursuing a lot of financial interests. If you want to buy a house, a negative credit rating prevents you from getting approval for a mortgage. It also makes it harder to get approval for an apartment or you’ll be required to pay a higher rent per month because of the risk the landlord carries.

Your rating could even affect your future employment. There are few employers who consider credit rating during the applications process.

Because credit plays such an important part in getting approved or moving forward with your financial pursuits, it is important to work on your overall credit rating.

How to Create a Positive Credit Score Quickly

When we get ourselves into financial difficulty, we want to know how to get out quickly! The reality is that it takes a little bit of time to work on your financial history. There is no quick fix and even if you won a large sum of money to settle your debt, you’d still have to build credit for future financial approvals.

The best step you can take is to calculate how much you can afford to pay towards your credit. If you can’t manage the different lines of credit, speak to your creditors and ask them if you can negotiate a repayment plan.

Many institutions are willing to adjust interest or accept smaller repayments over a longer period. If you cannot get them to budge, consider a credit repair company. They often act on your behalf to negotiate with these companies for manageable rates.

To rebuild credit, open a store or account card to make small purchases you can easily repay on time. The reason for this strategy is to show creditors that you can manage expenses and an open line of credit. Only use this strategy if you can repay small debts charged to the card at the end of every month.

Create a Plan

With pen to paper, create a plan of action to improve your debts. Even if you start small, keep paying it off and you’ll soon see a difference in your balance. It could take months to years but with perseverance, you will notice the difference in the opportunities that become available to you. It will also provide confidence and peace of mind that you don’t have looming debt. Banks also view your efforts more favorably even if you are still working on them.

You can repair your credit, with a plan and time, your efforts won’t go unnoticed.