Emergency Rent Banks Growing In Popularity In Canada

[Economy 40,113]

https://www.bnnbloomberg.ca/rent-banks-a-lifesaver-for-canadians-earning-low-moderate-incomes-1.1710643

 

Rent Banks are Government or charity backed non-for profit agencies that have been around for a while but for a long time have kind of hidden in obsecurity unknown to many people but are recently becoming more well known and grown in popularity

 

The purpose of rent banks is to provide interest free loans (in some cases even partial free grants) to low and medium income individuals who face a temporary lapse in stability so as to prevent such individuals from getting into a downward spiral difficult to get out of such as being evicted or resorting to high interest loans at money marts that in the long run make your situation worse

 

Rent banks typically target people who either face temporary challenges such as unexpected bills they cant pay on the spot, or temporary loss of employment but expect to go back to work soon

 

The idea is to prevent people who generally have it together to not fall into a downward spiral cycle they cant get out of because a small bit of help is usually. Enough to prevent that outcome in these people. These individuals generally also have the ability to pay back their interest free loans in time making these programs not that expensive because most money given out is recovered back

[LeJudas 6,376]

Wow that's awesome  

A dream of mine is to be able to help like this ("when I grow up") and I'm glad others are able to provide this help presently

[PartySick 100,176]

People pooling their money to help each other? Sounds like communism

But no, this is great

[Economy 40,113]

4 hours ago, PartySick said:

People pooling their money to help each other? Sounds like communism

But no, this is great

From my understanding since most of the money lent does get payed back, they dont require a tone if funding. The funding would be to cover defaults of those that end up not being able to pay back and general operating costs although i assume the more generous ones that sometimes give grants must require more funding

 

Anyway these banks arent for the purpose of ongoing charity for someone. Its purely to prevent stable people from loosing that stability and into a rabit hole because of temporary circumstances

 

They dont help out just anyone that doesnt fit the description if they clearly will not be able to pay back or if even limited time grants will not get them on their feet

 

I guess they are basically slightly more charitable versions of credit unions. They are not looking to profit but these banks are not throwing money at just anyone either

[TimisaMonster 31,067]

Canada is so progressive...USA wishes 

[Economy 40,113]

1 hour ago, TimisaMonster said:

Canada is so progressive...USA wishes 

This really isnt a common way to access money when struggling. Considering u never hear about these on media or ppl talking about them i assume its probably a challange to access them or perfectly fir their description of someone who qualifies

[WheresMy911Alice 18,820]

This is awesome, just adding to the list of reasons I want to move to Canada. I have for a while now 

[berlinforme 4,172]

I mean, that they're growing in popularity just further shows how f*cked up the real estate market is right now, right? It's generally a good thing, but sad that apparently it's becoming even more necessary. 

Edited January 24 by berlinforme

[Economy 40,113]

9 hours ago, WheresMy911Alice said:

This is awesome, just adding to the list of reasons I want to move to Canada. I have for a while now 

U might wanna rethink that. The housing crisis has made life unbearably expensive if u dont have a parent or someone other family member to life with

[Economy 40,113]

7 hours ago, berlinforme said:

I mean, that they're growing in popularity just further shows how f*cked up the real estate market is right now, right? It's generally a good thing, but sad that apparently it's becoming even more necessary. 

Pretty much. Housing is absolutely bananas in this country and i hope they fix the problems causing it