Moving can be an exciting time in your life. It can also be an incredibly stressful one. You may have to move because of a situation that is not ideal that makes the move unpleasant. No matter the reason, you must pack up your items and get them to your new location. Most of us have to move on a budget because we do not have unlimited funds at our disposal. This may complicate matters, but it does not have to make it a terrible experience. A moving loan can solve many of your problems. Continue reading to find out all the ways you can easily move on a budget.
I Have To Move, But I Am Not Sure I Can Afford It
If you have moved at any point in your life, you know that it can get expensive quickly. You also know that it is not fun to pack up all your items and memories into boxes and hope they arrive safely at your destination. Even if you have never moved before, you may begin to worry about the cost of moving and whether or not you can afford it. You have to move, but you do not have a lot of funds available to you. The first thing to consider is do you have to move now or can you wait a little while to save up some money? If you can wait, that may be the best thing for you to do. If you cannot wait, you may want to consider a moving loan. I will touch more on that a little later in this article.
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If you do not want to take out a loan, or think your credit score prevents you from receiving a loan for moving, it is possible to move on a budget. You may have to do a lot of the heavy lifting yourself. Literally, you may have to move your items to save money. There are many things you can do yourself, especially if you are moving within the same state.
How Much Does It Cost To Move?
According US News and World Report, lists the average cost of a move within the same state around $1,170, while the average cost of a move to a different state is $5,630. It also lists a typical move for an employee transfer costs around $12,459. It can get pretty expensive to move. The more items you have and the further you go makes the price tag jump even higher.
There may be some unexpected costs that you did not consider. You may have to storage all of your items. A move is a delicately timed dance. You are moving from one location to another. You are expected to vacate one residence by a certain date with the hope of moving into another one the same date. If anything goes wrong on either side, it could mean you do not have a place for your items. This is when storage costs enter the picture. If you plan to move on a budget and hope to cut costs, but careful when selecting a mover. If you select a mover because the upfront costs are cheaper, be sure to read the fine print. The price could be an hourly quote or there could be a limit to what the company will move.
Can I Get A Moving Loan?
In simple terms, yes, you can get a personal loan for moving. Relocation loans are the same as a personal loan, they just go by a slightly different name. Moving loans are money that a lender allows you to borrow. You promise to repay this loan with regular monthly payments for a specific amount of time. The lender charges you interest to allow you to borrow the money. It is basically the fee that the lender is charging you. This is how the bank makes money. For example, if you request to borrow $5,000 and the bank charges you 20 percent interest, they are making $1,000 just because they let you borrow money. The amount of interest the lender charges you is directly related to your credit score.
When you move on a budget, you may want to consider loans for moving. When you obtain a loan, you do not have to take money from your savings account. You can allow the money in your savings account to continue to grow. You can then use that money to pay back the monthly payments. If you do not have any money saved that you can use for the loan, you can borrow the money and pay it back in monthly installments. Before you agree to a loan, you should ensure that you can afford to pay the monthly amount. You can check whether you qualify for any of the loans offered by lenders we selected together with Fiona. Why would you do that? Well, we conduct a soft check, and you get to see what your options are. So it’s a win-win situation for you. And you get offers within seconds without even going anywhere.
Do I Have To Use A Moving Loan For Something Specific?
One of the great things about a personal loan for moving is you can use it for any moving costs that you need. This includes the items that you normally think of when it comes to moving such as paying for movers and moving supplies such as boxes and tape. It can also cover other packing materials such as bubble wrap, padded movers and blankets to cover fragile items. It can also cover ropes, cords, or anything you might need to tie down items.
When you obtain a moving loan, you can use it to pay for items such as storage costs. You may have to store your items for a short time while waiting for the time when you can move your items to your new home. You may have to store your items for a longer period of time because they may not fit in your new home. Perhaps you have to move into a temporary space for a short time and you may need to store items during that time.
You may require an overnight stay in a hotel or perhaps a rental car while you are moving from one location to another. A moving loan can pay for any of these items, as well. You can even use a moving to loan help pay for the first month of rent and security deposit. You can use a moving loan for anything that helps you during your move. When you plan to move on a budget, you should consider obtaining a loan to help you pay for some or all of your moving expenses.
Are There Fees With A Moving Loan?
As with any personal loan, you most likely have fees associated with a moving loan. It is important to understand all of the fees that you may have to pay. Lenders must disclose all fees before you sign the paperwork. This information is especially important when you move on a budget. You may have to pay an application fee. This is a fee the lender charges simply for filing out the application. You must pay this fee even if you are not approved for the loan.
There most likely will be administrative fees that you have to pay. This fee can be anywhere from 1 to 3 percent of your loan amount. This fee covers all the administrative work done by the lender. This includes pulling your credit report, transferring the money to your account and any other paperwork the lender must handle.
You should also understand that the principle amount of the loan is the actual amount you borrow. Then interest is added to the principle amount. If you want to borrow $7,000 and you have an interest rate of 15 percent, you are actually paying back $8,050 after the interest is included. Another point to remember is the fees come off the top of your loan. If you pay 3 percent in fees and you borrow $7,000, you only receive $6,790 after the fees are held.
You must ensure that you borrow a little more than the exact amount you need because fees always come off the top. You should also pay attention to prepayment penalties. Some lenders charge you a penalty if you pay back the loan before the term is over. If the loan term is 36 months and you pay it off in two years, you may have to pay a fee for paying it off a year early.
What If I Have Bad Credit?
If you have bad credit, you may have to pay a higher interest charge. The first thing you should do is get a copy of your credit report. When you get your credit report, you can see what your credit score really is. When you know your credit score, then you are able to prepare for what the lenders use to make their decisions. You can get an accurate picture of your credit rating. Do you really have bad credit, or do you just think you do?
This is not the time to guess. You should find out for sure. When you know, you are able to do something about it. Take a look at your credit report and make sure the items listed are accurate. If they are incorrect, you can fix them. Just fixing discrepancies could increase your credit score.
It is possible to get moving loans for bad credit, however, you may have to work harder for it. You may have to do some research to find the right loan for you. It is important to make sure whatever you loan you take that you can repay it. The worst thing you can do for yourself is take on a loan that you already cannot afford. You just put yourself in a worse place financially. When you have to move on a budget, it is not the time to make your credit score worse. You are moving into a new place, you do not want to be burdened by debt when you get there.
I Have To Move Out Of State; What Should I Do?
It is time for you to move and you have to move to a different state. I am sure you have figured out by now that you are not going to throw everything in your trunk and drive it to the next state, and then drive back to pick up more stuff to put in your trunk. You are going to need to move everything at one time. Depending on how much stuff you need to move, that dictates how you can move it. If you do not have furniture and you only have clothes and personal effects, you can easily move on a budget.
You may be able to move your items on the bus. Believe it or not, you can take more than 200 pounds of luggage with you on a bus. The cost of a bus ticket is fairly inexpensive, especially compare to the cost of a mover. Even better, you do not have to drive you or your items. However, this is only going to work under certain circumstances. If you have furniture, this is not going to be one of those circumstances. You may be able to rent a truck to carry your items. But you can rent a truck that is only big enough to hold only the items you need. You may need to call on a few friends to help you move your furniture. Renting a truck that you drive yourself cost much less than renting movers.
Should I Use A Moving Company?
If you cannot move your items yourself, then you need a moving company. If you do not have friends that can and are willing to help you lift heavy things, then you need a moving company. Moving companies typically come with a hefty price tag. However, it is possible to save money when using movers. If you do not want to consider moving loans bad credit and you know you have to move on a budget, you should consider saving money on a moving company. You want to carefully select a moving company.
One, you are trusting them with all of your possessions and in some cases, valuable possessions. Second, you want to make sure you get a good deal on your movers. You do not want to pay a ridiculous amount, especially when you could have saved some money. You should ask your family, friends, and coworkers for recommendations. There is nothing more valuable than someone’s first hand experience. You can also ask any moving company you consider for referrals.
Make sure that any moving company you choose is insured. Make sure they do complete background checks on all employees. Remember, you are trusting these movers with your possessions. When the moving company gives you an estimate for the moving expenses, ask for a breakdown of the total. You want to see how they arrived at that number. Also, ask if the figure they quote you is an estimate or the actual total. If it is an estimate, find out what can make that number change. You can get quotes from more than one place and make your determination based on price and referrals.
How Can I Save Money While Moving?
If you need to move on a budget, there are some ways that you can cut the cost of your move. There are some quick and easy ways to reduce the cost of your move. One of the first things you can do is pack all of your own items. There are many moving companies that pack your items for you, as well as move your items. However, having your items packed for you comes with a hefty price. When you consider your move, you must consider every item along the way and what it costs you. Now, is the best time to reduce the amount of items you have.
You should take a look at all the items you have and determine if you really need these items. If you do not need an item, then get rid of it. The last thing you want to do is move items you do not need. This helps you save money on the boxes you need and it saves room on the moving truck. You can also save money by not moving the items you do not need.
Moving boxes can add up when you have to pack a lot of items. You can use any sturdy box as a moving box. Whenever you go to a store, ask the manager if they have any boxes they can give you for free. Most of the time stores have boxes lying around. If they give them to you, they do not have to worry about breaking them down and disposing of them. Giving them to you makes things easier for them.
All you have to do is ask. You can use towels or blankets as padding for fragile items. This is a win win because you will not have to spend extra money on packing material and your towels and blankets are delivered to your home. You might want to label the boxes that contain the towels and blankets so you know which boxes contain them when you begin to unpack your items.
What Should I Put On My Check List?
When you are considering moving, before you do anything else, you should create a checklist of tasks to complete. This helps you stay on track to make sure you complete all the tasks you need to finish. This also helps keep you on track financially when you are trying to move on a budget. As you begin to consider packing, think about if you plan to pack yourself or have a company pack for you.
If you plan to pack yourself, be smart about it. Label the boxes in a way that you understand what is in them. Do not put come code on the box and think you will know what it means when it arrives in your home. You probably will not. Also, you should label the box with the appropriate room name that way when it gets unloaded, it can be put in the correct room.
You should create a list of all the people and businesses you need to update. For example, did you remember to tell your lawn guy, if applicable, that you are moving? Do you have any packages delivered automatically on a regular basis? If so, did you either stop the delivery or change the address? Now is when you need to make the decision about movers. If you are not going to use movers, do you need to rent a truck? You should make sure expensive, fragile and sentimental items have appropriate insurance on them.
When you pack electronics, make sure you pack the cord with them. Try to put all your fragile items in one box with a lot of protection. When you are packing your personal items, you should make sure you pack toiletries and a few changes of clothes in a separate bag so you have easy access to it. You never know what is going to happen while you are unpacking. When packing, try to pack one room a day so you do not get too overwhelmed.
Create A Budget
It makes complete sense that if you have to move on a budget, you must have some idea of the budget. The best way to know your budget and stay within it is to create one. There are many applications and websites available to help you create the best budget for you. The easiest way to do this is create a list of all your expenses. Make sure you do not overlook anything. Write down everything on which you spend money. Then add them all up. Next, list out all of your income. Then you subtract your expenses from your income and hope it is a positive number.
If it is already a negative, you are in a world of hurt because that means you are spending more than you are earning and you have no money to save. If that number is a positive, this is how much money you have left over every month to either save for a future move, or use right now for your move. Most likely, one month of excess is not going to be enough to cover a move, unless you have no expenses. You may need to dig into your savings, wait until you save money, or take out a moving loan.
How Can I Save More Money?
Perhaps you have some time on your side and you are not quite ready to move. This means that you can save money and still move on a budget. Looking at the list of expenses that you created earlier, now is the time to be strategic and a little cut throat. You want to reduce your spending so you can increase your savings. Now is the time to cancel that gym membership that you are not using. It is also the time to cancel those subscriptions with which you are not doing anything. And the time to reduce the number of meals you eat out.
You should start eating in and making coffee at home. You will be surprised at how much money that can save you over the course of a year. If you have an expensive habit that is not good for you, now may be the time to consider quitting. A habit like cigarettes is not only bad for your health but incredibly expensive. This might just be the incentive you need to quit,
At the end of all of this, I have talked a lot about how to move on a budget. I mentioned creating a budget and saving as much money as you can. I also touched on using a personal loan for moving expenses. All of these are viable options and there may be one best option for you right now. You should weight all of the options and decide which one is right for you. You have to do what is in your best interest. If you cannot afford to repay a loan, then that is not right for you. If you do not have time to save money, then that is not right for you. Even when you have to move on a budget, you have to make choices that are the best ones for you at this time.
Julia Peoples is a long-time business manager focused on providing decision making assistance to the public. She works with people at key points of their lives who are making important retirement and financial decisions. She has had many articles published that educate the public on sound financial decision making.
Julia writes for those who are working towards financial freedom or a better understanding of how finances work. She has shared her financial insights with individuals on a one on one basis for years.