Do you foresee a move in your not-so-distant future? If so, you’ll need to start thinking about your budget now. Without a plan for spending, a move can be a challenge for your budget.
Between buying packing supplies and renting a moving truck, moving can get pretty expensive. Because relocating is so costly, paying for your moving costs out of pocket may not be possible. If you have no choice but to move before you have the cash to pay for it, relocation loans and credit cards are an option.
There are several variables that have to be considered while planning your finances for moving. So here’s all you need to know about how to finance your move according to full-service moving experts, Tiger Moving & Storage.
1. Loans
Pros
- Typically have lower interest rates than credit cards.
- They have fixed repayment terms.
- They’re typically unsecured, so you won’t need collateral.
- Lenders usually offer a wide range of loan amounts, allowing you to finance a small or large move.
Cons
- If you’re purchasing a home, getting a moving loan may affect your mortgage approval.
- Come with high fees.
- You may not qualify if you have a low credit score.
- Add to your debt load and may strain your budget.
2. Credit cards
Pros
- An easy and convenient way to access funds
- Easier to carry around than money or checkbooks.
- Good way of building up a credit history, providing you with options for taking out loans or mortgages.
- Easier to keep track of their finances using cards rather than cash.
Cons
- Interest rates on credit cards are usually exorbitantly high. They are generally much more expensive than taking out a personal loan.
- Critical financial problems may occur when they reach credit limits or suffer a sudden drop in income through
Other Alternative Ways to Finance a Move
- Check Your Credit Score: Improve your credit score by paying down debt or asking for an increase in your credit limit.
- Work Your Budget: Take a look at your monthly budget to determine how much you can easily repay each month. If you can only afford to make small monthly payments, look for a longer loan term or borrow a smaller amount.
- Reduce Your Costs: Reduce the cost by doing things like packing yourself, donating some of your belongings to charity so that your move will weigh less, or shopping around for the right movers.
- Employer Assistance: If your relocation is due to a new job (or job transfer), ask your employer to finance it. Even if your new boss doesn’t want to cover the whole move, they might be willing to finance a portion of it.
- Asset Liquidation: Sell all the extra belongings you’ve been holding on to and use the money to finance the move. Plus, the move will be cheaper if you’re moving less stuff.
- Savings: If you have money put away in a savings account, now might be a good time to tap into it. You can always rebuild your savings once you are settled in your new home.
Tiger Moving & Storage is a team of full-service professional home movers located in Northern New Jersey. Our company was founded with you, the customer, in mind, and our mission is to provide the highest level of service in our industry.
Get a free quote from our expert movers by calling (973) 227-5250 or filling out our online contact form. We serve clients throughout New Jersey.
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