40 million Americans move every year.
Reasons for moving vary – Lifestyle upgrades, new jobs, the yearning to turn the page in one’s life… The list goes on.
What all movers have in common though is the fact that they need to shell out serious cash to fund relocating.
Hiring movers, renting trucks, paying for fuel, getting furniture packed up, cable installation fees, utility contract breaks and more can all be costly and in combination with one another can easily cost movers thousands of dollars.
That’s why so many movers consider taking on cash loans to pay for their moving related expenses.
But is doing so a good idea? When does it make sense to use loans for moving expenses? Where can you find moving lenders?
Below, we explore the ins and outs of leveraging cash loans when moving and make suggestions on how to find the best moving loans.
What Is a Cash Loan?
Before we jump into what you should consider when taking on a loan for moving expenses and what loan providers can help you out, let’s define what a cash loan is.
“Cash loans” is a malleable term that’s frequently used to refer to payday loan products. The term is also used as a catch-all term to reference any non-specific personal-loan product.
Whichever loan product you opt for, if you’re considering borrowing money to pay for your move, the information in this article is going to be valuable to you.
When Does it Make Sense to Use Loans for Moving Expenses?
Loans can make moving a lot easier, particularly on those that don’t have much in the way of savings (we’ll go over specific benefits loans provide movers with later in this article).
It can make sense to leverage cash loans for moving expenses if one of the following is true for you:
You’ll Be Working After Your Move
People who move often do so to find work. If you’re sure that there’s a paycheck waiting for you at the end of your move that will enable you to pay back loans you take on to cover expenses, you can feel confident that you’ll be able to keep up with your loan payment obligations.
You Have Some Other Plan to Pay Back Your Loan
Whether you’re moving to a job or not, if you still feel like you have a viable plan to pay back your moving loan, it can make sense to take one out. Maybe you’re confident you’ll come into a job quickly, maybe you get checks on a regular basis from a recent settlement or via other benefits.
Whatever your financial situation is, if you’re sure that you’ll be able to access the money you’ll need to pay down your debt, you’re safe to take on a loan for moving.
When Doesn’t It Make Sense to Use Loans for Moving Expenses?
It’s not always a good idea to take on a loan to pay for your move. While loans can make moving affordable in the short-term, given the interest and fees they come with, they will raise your move’s overall cost.
That’s why, if you have savings to pay for your move, you may be better off leveraging that money as opposed to borrowing.
Furthermore, it never makes financial sense to take on loans that you don’t think you’ll be able to pay back. Doing so can further hamper your financial situation and may lead to creditors harassing you and your family to repay your debt.
Be sure to pay close attention to the interest rate your loan provider is offering you on your loan product. If the interest rate is low, you can make an argument that the cost of the loan is worth the convenience it offers. If the only interest rates you quality for are high, you’ll want to think closely on whether or not borrowing money from a lender is worth it.
How Cash Loans Can Make Your Moving Day a Breeze
Now that you have an understanding of when it does and doesn’t make sense to pursue loans to cover moving costs, here are some of the undeniable advantages loans can bring to your moving process.
Shielding From Unpredictable Expenses
You may have just enough money sitting in your checking or savings account to pay for your move without having to borrow anything. That can be good in that you’ll save some money on interest and fees by self-financing your move.
But what if something unexpected comes up?
You’re moving your whole life to a new area that you probably don’t know much about. Your new house could need an emergency fix, you could blow a tire, your movers could lose something important in transit…
If your savings are completely exhausted, are you going to be able to buy your way out of an emergency?
When you use cash loans for moving, depending on your loan type, you’ll be making small monthly payments on your loan as opposed to draining a massive chunk out of your money all at once. Those small manageable payments will give you the economic flexibility you need to deal with unforeseen adversity.
Moving is stressful enough. Adding stress to your move by worrying about money or by needing to do a lot of your moving work yourself because you don’t have the cash to hire help can make the experience unbearable.
Taking out a loan for moving expenses can give you much needed peace of mind during this difficult time in your life.
Loans are Easy to Get
A lot of people who are thinking about taking on a loan for moving expenses forgo doing so because they don’t want to go through the stress of a lengthy loan application process. The good news with personal and cash loans today is that getting money has never been easier.
You can easily find loan providers online, many of which won’t run your credit and can get you money in just a few hours!
More Money to Experience Your New Community
You’re moving to a new place! Getting to know that place and taking everything in should be at the top of your to-do list.
The problem with that is, if you’re cash poor, you’re not going to have the money you need to go out and eat, enjoy nightlife, go out with new friends and do other things that can help strengthen your ties to the area.
When you opt to fund your move with a loan, you’ll have more money in your pocket to do meaningful things that can make your transition a lot easier.
“I’m Sold on Looking Into Loan Options for My Move… But Where Can I Find a Lender?”
There are no shortage of lenders that can offer you a variety of loan types to help you pay for your moving expenses. You could go to your local bank, credit union, or expand your options exponentially by looking online.
If you’re interested in looking for cash loans for moving online, our team at Bonsai Finance can help. We offer state of the art loan finding tools that can immediately help you filter through thousands of lenders to locate the perfect organization to do business with.
You can find our loan locating tools right here!
Wrapping Up Using Cash Loans to Cover Your Moving Expenses
We’ve just shared with you some considerations you should keep in mind when leveraging cash loans for your moving expenses.
Before you pursue a loan for your move, be sure to ask your new employer (if applicable) if they offer any relocation stipends to new employees. Sometimes you’ll find that you can get free money from your new place of work or may be able to attain free financing for your move just by asking.
Also, it never hurts to ask family and friends if you can borrow from them. While we understand the rift borrowing from family members can cause, if you have a good rapport with people in your life and have every intention of paying them back, asking around could save you a tremendous amount in interest.
If finding a high-quality loan for your move is the right option for you, explore our tools on Bonsai Finance today to get the money you need in as little as a few hours.
Also, feel free to dive deeper into our Learning Center for more tips on how to take control of your financial life!