Alternatives To Becoming Homeless: 7 Housing Options That Will Save You Money

Ways To Avoid Homelessness

Not long ago, Oprah Winfrey and Lisa Ling did a show on homelessness in the midst of the housing crisis.

And let’s not ignore the fact that renters of single-family homes take extra risks, as well.

The major cause of homelessness is plain and simple.

It’s due to a lack of affordable housing!

The #1 cause of homelessness is lack of affordable housing. The number of renters with extremely low incomes far surpasses the number of available affordable rental units.

~National Homelessness Law Center

Lisa Ling talked with many families who were either “well off” or “middle class” 1 year ago and who are now living in sub-standard housing (such as homeless shelters, tent cities, in their office space, in a car) — simply as a result of the affordable housing crisis we’re experiencing in the U.S. right now.

The show did end on a positive note with personal stories from people who found alternatives to being homeless.

This is what I would like to address.

While you may have to give up your house and “life as you know it” temporarily, you DON’T have to become homeless!

7 Ways To Avoid Being Homeless

These are the 7 best ways to avoid homelessness today…

#1 – Move In With Relatives

It might be embarrassing to ask your relatives. And you may have to go through a few No’s before you get to a Yes. But someone will say Yes. There are family members and friends who are struggling as much as you are — and even if you can only offer cleaning, cooking services, and childcare, you may be freeing them up to bring more money into the household.

Here are some good tips for moving back in with your parents.

#2 – Rent Out A Room In Your Home

Renting out a room in your house will make it easier to pay the bills each month. There are college students, elderly people, and single mothers who are good people but down on their luck. They can contribute to your home without disturbing your life too much. Renting a room can mean the difference between making the mortgage payment or not — so before you give up your home, consider giving up a little space. You can probably make even more money if you’re willing to move out of your master bedroom and share a bathroom with your kids — so your renter will have a bit more privacy.

Here are some really good ways to interview a potential roommate.

#3 – Don’t Move Out Of Your Home

The bank does NOT want your home. Many people just stop talking to the mortgage company and abandon the home. But as long as you can pay something (anything!), make arrangements with the bank to make payments you can afford. Getting a roommate can also help you meet a reasonable payment schedule.

Here’s how to be well-prepared before you speak with your lender.

#4 – Downsize… A Lot

One family in the Oprah story moved from a house to a gated apartment community, ran out of money, and became homeless. Perhaps it would be better to get a very inexpensive apartment instead of a nicer apartment. That way, the money will last longer and perhaps you will be better able to pay the rent with only part-time work.

Here are some great ideas about how to downsize your home without losing your mind.

#5 – Apply For Public Assistance

Many people wait until it’s too late to apply for public assistance. If you don’t have enough income coming in to pay for the house and food, then you can get assistance to cover the food bill. You should also visit food pantries in your local area. You can even get medical coverage. The point is to reserve as much money as possible to cover the house bill.

Two great places to start are: Benefits.gov and USA.gov.

#6 – Get Foreclosure Assistance

The U.S. Department of Housing and Urban Development (HUD) has a lot of invaluable advice and helpful resources for those who are facing foreclosure. Contacting HUD may turn out to be one of the best ways to avoid homelessness today. You’ll probably want to go through the steps to avoid foreclosure. But sometimes foreclosure is the best option.

Here’s a helpful Foreclosure 101 Guide for homeowners.

#7 – Rent An Extended Stay Hotel Room

At $50 to $70 a night, it will cost about $1,500 to $2,000 a month to rent a hotel room on a regular basis. It may sound like a lot — especially if you’re paying that much for your mortgage and not meeting the bills. But remember, you won’t have to pay for electric, heat, water, television, and in some cases, breakfast. Any family who can scrape together $2,000 a month should be able to live in extended stay housing until the situation improves.

Here’s how to find the best deal at an extended stay hotel.

More Resources To Help You Avoid Being Homeless

In addition to the links I’ve included above, here are a few additional ways to avoid homelessness:

• How To Renegotiate Your Rent With Your Landlord
• Thinking About Arranging A Mortgage Short Sale?
• How House Sitting Can Save You Money On Housing Costs
• Too Much Stuff & Knowing When to Let It Go 
• Why Do Homeless People Avoid Shelters? (25 Reasons)

Circling back to Oprah… this video shows one of the women that Oprah featured on her show. See how one woman went from homeless to a successful entrepreneur: