4 Leading Ways to Finance a Move When Savings Aren’t Available

Family moving into new apartment

As anyone who has relocated before is aware, moving to a new address can be a costly endeavor — especially if you hire a professional moving company to do the heavy lifting for you.

But even for those who choose to cut costs by making a DIY move, the expenses can quickly add up … and they only increase as the distance traveled grows longer. Some of the most significant expenses related to a DIY relocation can include moving truck rental, fuel for the truck, insurance to cover the truck and your belongings, and (for long-distance moves) lodging along the way — all in addition to moving supplies like boxes, tape and packing materials. And in some cases, a storage unit and/or a temporary place to stay may also be needed if the new residence isn’t yet ready for move-in.

4 leading ways to pay for a move

Needless to say, the financial impacts of a relocation can be daunting for many people — especially if they haven’t started saving for a big move and don’t have the cash on hand to cover the relocation. But even in these cases, several options are usually available to most people who need to change addresses.

Have questions or concerns about how to finance a move? Consider these four top ways to pay for a relocation if you don’t have the funds for the move readily available:

1. Relocation loan — A type of personal loan , relocation loans (also known as moving loans) can offer a convenient way to quickly secure the money needed for a move, especially for borrowers with good credit and a stable income. These types of loans are typically unsecured, meaning they don’t require the borrower to put up any form of collateral (such as their home) to secure the loan. In most cases, the amount borrowed is provided in an up-front lump sum, then the borrower repays the lender via monthly payments, with the lender charging a fixed interest rate for the use of the money.

2. Credit card — Another common option for securing the funding needed for relocation is putting the moving expenses on a credit card. One advantage that using a credit card can deliver is that it can offer added protections that aren’t available to consumers who pay for a move with cash. For example, if the consumer were to experience a problem with his or her moving company and its service, he or she can dispute the charges — and in many cases can get them reversed if the complaint is legitimate. However, paying with a credit card can also raise the total cost of the move with added payment-processing fees from some vendors, along with the typically higher interest rates that accompany credit card debt that isn’t quickly paid off.

3. Employer assistance — For those who are relocating for a new job or a different position at work, employers will sometimes cover all of a worker’s moving expenses, or at least provide some monetary help to help lessen the financial impact of moving on the employee. Depending on the company — and in some cases available upon request — the expenses an employer may cover can include packing services, a moving company and moving insurance, and temporary housing, all of which may be provided up front or via a reimbursement for expenses incurred. In other cases, the employer may provide a lump-sum payment before or after the relocation to help defray moving costs.

4.Moving assistance programs and grants — For those who meet the qualification criteria, which often include income restrictions, demographic requirements and/or profession-based stipulations, a number of assistance and grant programs are available to help with moving expenses. These programs are often designed to help low-income families reduce the financial impact of moving, especially when the move is related to securing employment, as well as people who have been displaced by natural disasters or government actions. A few options in this area include the Department of Housing and Urban Development’s Good Neighbor Next Door program and Federal Relocation Assistance Program, the Modest Needs charitable organization, and the Salvation Army’s Housing Now program.

At The Southern Bank, we pride ourselves on offering friendly, personalized service to all of our customers — and that includes providing guidance when you have questions about any of our banking services. To learn more about our Personal Banking services ranging from Mortgages to Personal Checking, Personal Loans, Savings & Money Market, Certificates of Deposit (CDs) and more, check out the Personal Banking page on our website, or visit one of our local branches for friendly, in-person service with a smile.

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