Key learning points
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Moving costs range from several hundred dollars to more than $10,000, depending on factors such as the size of your home and distance.
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Paying cash is the best way to save money on moving costs because you can avoid interest.
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Personal loans and credit cards can also help cover the costs of both planned and unexpected moves.
Financing your move may be a necessity depending on how far you are going and how much you have. Whether planned or unexpected, a move can put a dent in your finances. According to AngieLocal moves cost on average between $881 and $2,545. Meanwhile, cross-country moves can set you back $10,000 or more.
If you move for work, your employer can reimburse some of these costs. But it’s still a good idea to explore different financing options. This can minimize stress and prevent unpleasant surprises.
How to afford a move
Although moving can be expensive, there are a few ways to get the money you need. And if you’re careful about it, you may be able to avoid high fees and interest.
Save and pay in cash
Saving money for an unexpected move can be difficult. But if you know about the move months in advance, consider setting up a moving fund. This way you minimize the need to take on debt to cover moving costs.
To set up a realistic fund, research the costs of moving companies or trucks in your area. This will give you an idea of how much you need. Then divide the costs by the number of months until your move. For example, if your estimated expenses are $3,000 and you’re moving within 12 months, try putting $250 per month into a high-yield savings account.
Best for
Those who have at least six months before moving.
Rode
Bankrate’s Emergency Savings Report shows that only 44 percent of American adults could afford $1,000 in emergency expenses with their savings. Considering that moving can cost hundreds, if not thousands, of dollars, this approach is best suited for those who have several months to come up with the money.
Personal loans
If you need to finance all or part of your move, applying for a personal loan can be helpful. Most personal loans are unsecured, meaning no collateral is required. These loans have a fixed repayment term of two to seven years, depending on the lender.
The main benefit of using a personal loan for moving expenses is the interest rate. Personal loans have an average interest rate of just under 12 percent. However, borrowers with excellent credit scores can secure interest rates below 10 percent.
In contrast, the average credit card interest rate is almost 21 percent. The interest rate on personal loans is also fixed, while the interest rate on credit cards can fluctuate based on market conditions.
However, if you have bad or bad credit, you might want to think twice about it. Although some lenders offer bad credit loans, these typically come with high interest rates and fees that can make your loan quite expensive.
Personal loans can be obtained from banks, credit unions and online lenders. The application process is usually easiest with online lenders, but in general, personal loans are much faster than other loans. It takes just one day to take out a personal loan.
Best for
Good to excellent borrowers with unexpected movements or who have not saved enough.
Rode
Fixed interest rates and repayment terms can make personal loans a more cost-effective alternative for good and excellent borrowers than most credit cards.
Credit cards
Credit cards offer revolving debt, which means that – unlike personal loans – you don’t have to reapply for credit if you need more money. One of the biggest disadvantages is that credit cards usually have a higher interest rate than personal loans.
Let’s say you’ve crunched the numbers and expect your total expenses to be $3,000. The largest monthly payment you can afford is about $100. A personal loan with an annual interest rate of 11 percent and a three-year term will give you a monthly payment of $98.22. Over the life of the loan, you will pay approximately $536 in interest.
Most zero-interest credit card offers last from 12 to 21 months. If you could afford to pay about $300 on your balance each month, you could benefit from a credit card because you wouldn’t have to pay interest. If not, a personal loan offers a lower payment and will save you more than $400 over the life of your loan. Moreover, you cannot be tempted to take out a personal loan from the department store and increase your debts.
Best for
Those with expected or unexpected moves that need extra time to raise the money.
Rode
If your card offers a grace period or a 0 percent introductory offer, you can avoid interest (something you can’t do with a personal loan) while buying some extra time to raise the money.
Relocation assistance
If you are moving for a job, ask your new employer whether they will reimburse part of your moving costs. Some employers offer a relocation package, which covers some or all of your moving costs, as an incentive to accept a job.
Alternatively, you can ask for a sign-on bonus or negotiate a higher salary and then use some or all of the extra money to cover your moving costs.
Best for
Work-related movements.
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Two-thirds of employers cover the moving costs of current employees who are transferred Zippia. If that’s your situation, chances are your employer will give you a lump sum to help cover costs.
The costs of moving
Although moving costs vary, here are seven common costs to help you estimate what your move will cost:
- Hire movers. This is one of the most important expenses you will make because you usually get what you pay for. Angie found that hiring movers costs an average of at least $2,000 for the full service. Costs vary widely depending on distance, location, how much you’re moving, and whether you add additional services.
- Packing services. If you hire your moving company or someone else to pack your home for you, you will incur these costs. Angie says the average cost of packaging services is $1,000 for packaging materials and labor.
- Boxes. You will need boxes if you don’t hire someone for packing services. Boxes are generally available for free at supermarkets or department stores. If you need containers for transporting fragile items, remember that durable plastic containers can cost more than $20 each, depending on size.
- Trip. Gas, shelter and food can add up quickly. And if you fly, a small family can easily earn more than $1,000 for a single domestic flight.
- Storage. If your move takes longer than expected, you may need to put some of your belongings in storage. The cost of a self-storage unit varies widely and depends on its size and location. For example, a self-storage unit that is 10 by 10 feet, has an average monthly cost of up to $175, while a 5-by-5-foot one can cost up to $100.
- Item substitutions. Chances are that at least a few things will break during your move. Don’t forget to set aside some money to cover replacements.
- Deposits and fees. You may be required to pay early termination fees for services such as cable or utilities. You may even need to put down a deposit for services on your new home before you move in.
In-state vs. out-of-state moving costs
Local movements are any movements of less than 100 miles within the same state, and interstate or long-distance movements are any movements that occur across the country or across state lines.
| Type of mover | Average costs | Extra cost |
|---|---|---|
| Local/Intrastate | $50-$100 per hour | $25-$50 additional per additional mover |
| Interstate/Cross Country | $2,600 – $6,900 per load |
Source: Housing advisor
Moving costs depend on the size of the house
These are average moving costs based on home size. The values are based on the average hourly rates charged for a local move.
| Size of house | Estimated moving time | Average price range |
|---|---|---|
| One bedroom apartment | 3-5 hours | $150-$500 |
| 2 bedroom apartment | 4-7 hours | $200-$700 |
| 3 bedroom apartment | 6-8 hours | $450 – $1,200 |
| 4 bedroom house | 8-12 hours | $600 – $1,800 |
Source: Housing advisor
The abolition of the moving expenses deduction
Under the previous law, taxpayers were allowed to deduct some of the costs of moving their personal belongings, plus certain travel expenses. But as of 2018, the exclusions for qualified moving reimbursements and deductions have both been suspended until 2025. The only exception is active duty military personnel who move pursuant to a military order.
it comes down to
Whether it’s savings, using a personal loan, credit card, or asking your employer for help with the move, there are ways to cover the costs of a move without breaking the bank. However, it is important to carefully evaluate each option and understand the full costs of each option. You should consider your circumstances and financial stability before making a decision.
If your move is a few months away, you can avoid getting into debt by putting a little extra aside every month. But if your move happens unexpectedly, using a personal loan or credit card can make these costs more manageable.
