Debt & Moving

Money Management
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Hi all, longtime reader/new community member seeking advice for handling debt while I need to move:

I recently decided to work with a company to consolidate my CC debt with a personal loan. This is a huge weight off my shoulders because I had a particularly bad 3 years (2019 year being my worst yet) when it came to my mental health and personal finance that sent me spiraling to 20k+ in debt (interest payments were the main problem). As I’m sure you know or possibly even can relate, this became a shameful internal struggle that I didn’t share with anybody for a long time and didn’t seek help due to that. With the new year, I’ve decided to change my life while I still can and stop feeling sorry for myself, which meant getting a better job, getting a financial advisor to help me with budgeting, and making the decision to move out of my expensive building (where I shouldn’t have been in the first place).

I’m moving out of my current apartment and away from a bad living situation with a toxic roommate, with the intent to move into a cheaper place with my friend. We found the perfect place in a cheaper neighborhood but I have a ton of concerns about how my rental application is going to look to a landlord because I have to list out my loans, assets, etc, which I did not have to do when I moved into my current building 2 years ago (my debt wasn’t as bad but I specifically remember we were initially rejected due to income requirements - different can of worms there but I was seriously underpaid at my old job). I now have a stable, well-paying job, despite my debt my credit history is considered good (never going below 650 even when I was deeply in dept going nowhere due to the minimum payments), I’ve never been late/missed out on rent or CC payments, and I managed to build up savings since I took out the loan so I have enough to move with no problem. My roommate is listing out their student loans as opposed to personal loans and they earn more. I was wondering if anybody had advice or has had similar struggles, or if there is anything I can do to convince the landlord that I am a trustworthy tenant.

TL;DR I have to list out my personal loan on a rental application for a great place and I’m very insecure about my debt. I’ve overall turned my life around when it came to finances but I’m worried the loan will negate that.

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Mharakas,

I am very proud of you for trying to work on this issue and go forward. It is difficult. Let me ask you a few questions. Is it possible that you could get a smaller and cheaper apartment in the building you presently reside? Does the corporation who owns it, also have other apartment complexes or buildings? If so, maybe you could do a transfer so you would not have to worry about how things look on a new application. Another thing, is your roommate definitely moving out, or are you? If you could stay in the apartment, maybe you could get a new roommate? Is any of that possible?

Kimberly

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@mharakas I would say that I agree with Kimberly’s suggestions here. They would be the actions I would take. If it IS possible to either move to another apt in the same building that is less expensive, or if your roommate or you are moving and you need another, make sure that everything is ok’d 1st and foremost by your landlord in writing, and make sure you have fully discussed the terms and conditions with them first. In many states even changing within the same building can affect your credit. I know it does here in TN, sometimes negatively, sometimes positively, depending upon the situation. Wise decisions is what we are about here. We’re here to help each other succeed.

I see you said you were a longtime reader, as was I before I joined last year. I want to welcome you to the Penny Hoarder and offer any help I can as the Welcome Ambassador.

Blessings.

AverageJoe

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Thanks for the replies @averagejoe and @mskimberly ! Update: I did end up getting approved to move into the cheaper place and I’m continuing to work with The Financial Gym to manage my budget and work down my debt - it’s going to take a long time but I can see the light at the end of the tunnel. It helped having a long talk with my roommate about my financial situation and I’m slowly moving forward to manage my dept and other financial issues, but I’m in a much better mental state with how much I’m saving & with having a supportive person in the house.

Thank you all and happy saving!

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@Maharakas, that is excellent news! It must feel so good to be out of the rut and moving in the right direction. Congratulations!