How a personal loan could help with moving expenses

Worried about how you’ll afford your moving expenses? A personal loan can be a responsible way to ease these worries and alleviate financial stress. (iStock)

Many Americans believe that moving is one of the most stressful events of their lifetime — even more stressful than having children or getting divorced. The fact that the average cost of moving is $1,500 certainly increases these feelings. No one needs to add stress during a move, especially when it causes a strain on your finances.

After closing on a house or paying the fees associated with signing a rental lease, you may find yourself tight on funds. One solution to decrease stress and reduce the financial impact of relocation is to use a personal loan to cover moving expenses. A personal loan can adequately cover your moving expenses without creating more financial strain.

Credible can show you several personal loan lenders that offer quick loans to help you move. Head to Credible to compare rates and lenders and find a loan that works for you.

Here are some tips to help you figure out how much to borrow for your move:

Remember, you can get all the information you need about personal loans, including comparisons of rates and lenders, by visiting Credible.

1. Create a budget

A personal loan for moving doesn't necessarily need to break the bank. It doesn't make sense to have a big loan to pay if you can avoid it. One of the best ways to responsibly manage your moving expenses is to create and maintain a budget. To determine how much you can allocate towards your move, first subtract your estimated upcoming monthly expenses from your monthly base pay. The remaining money constitutes your personal funds, part of which could be allocated for repaying a personal loan. With this amount in mind, you’ll have a better idea of how high of a personal loan amount you can responsibly afford to repay each month.

2. Cut down on items

Even if you don’t hire professional movers, relocating can be costly. You could lower the amount you’d need to borrow by cutting down on the number of items you plan to move. Throwing away, selling, or donating old clothes, toys, furniture, and other possessions will reduce the number of moving supplies you need to purchase or rent, such as boxes and a moving truck.

3. Weigh time versus expense

Should you hire professional movers or should you complete the move yourself? To determine how much of a personal loan you’d need, you must consider whether time or money is more valuable in the short term. If you cannot take off work, it may be beneficial to use your personal loan to hire a professional moving service so that you can continue to earn the paycheck which will ultimately help you repay the loan. However, if you have the time to pack and move the majority of your items, you can hire professional movers solely to transport large furniture, which will reduce the overall amount you need to borrow. Consider using a personal loans calculator to compare personal loan rates and costs when accounting for these factors.

4. Weigh quality versus expense

Taking a personal loan for moving expenses is a unique choice. You’ll next have to consider if you want a budget-friendly or added-value professional moving service. Some bare-bones services will have low prices because they simply move your possessions from place to place. More expensive moving companies may offer services such as the packing and unpacking of boxes, house cleaning, and temporary storage. Compare the rates and services offered from a number of companies, noting customer testimonials for each. If you’re using your personal loan to fund professional moving services, you want to ensure that you’re investing this money in the specific services you need.

5. Factor in your current debt

A personal loan can certainly help you overcome the financial stress of moving, however, every loan requires careful consideration. Before taking out a personal loan, it’s important to consider your current debt. If you’re having trouble making payments on your credit card, mortgage, auto, or other loans, you may want to consider taking a smaller personal loan to cover your moving expenses. Do you have other secured loans? What are the rates and fees associated with those loans? How much credit card debt do you currently have? Credit history and credit loans certainly play a role in any loan application. And while soft credit checks may not ding your credit score as much, hard ones will.

Visit Credible and use their personal loan calculator to determine how much you can borrow. You can then instantly find the best personal loan rates that will help you responsibly cover your moving expenses.

Would this be your first time taking out a personal loan? Consider getting prequalified and addressing any outstanding issues on your credit report before speaking with a lender. You should also shop around and compare personal loan options to see which lenders provide the best rates. Keep in mind that even if one lender offers the lowest rate, their fees could potentially cost you more overall than a lender offering a slightly higher rate with fewer fees.

It’s vital that you create and stick to a budget so you don’t borrow more than you need. To ensure you’re comfortable and confident in your personal loan selection, visit Credible to instantly compare rates and lenders, as well as speak with an experienced loan officer who can answer your personal loan questions.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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