How to pay for moving expenses: 4 options to consider
Key takeaways
A local or cross-country move can set you back thousands of dollars.
Financing your move with a personal loan or credit card is an option if you don't have enough money saved.
Ask your employer if it has a relocation assistance program or negotiate a higher salary if you're moving for a new job.
Moving adds up to be a large life expense. And it can catch you off guard financially if it’s a sudden or unexpected move. The average cost of a local move is $1,703 and the average cost of a cross-country move is $4,596, according to HomeAdvisor.
A personal loan or credit card may be helpful if you don’t have enough savings to cover relocation costs. If you are moving for work, you may be able to negotiate with them to cover moving costs. However you pay for your move, be sure to consider your options and understand the full cost of each option.
How to pay for a move
While moving is expensive, there are a few ways that you may be able to get the money you need.
Save and pay 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. That way, you minimize your need to take on debt to cover moving expenses.
Research the cost of moving companies or trucks in your area to estimate your total moving costs. Next, divide the cost by the number of months until your move. For example, if your estimated cost is $3,000 and you’re moving in 12 months, aim to deposit $250 a month into a high-yield savings account.
Personal loans
It’s ideal to pay for your move upfront, but that’s not always possible. If you need to finance some or all of your move, applying for a personal loan may be useful. Personal loans are either secured or unsecured and are paid off in equal installments, usually over two to seven years. The monthly payments include principal and interest.
The main benefit of using a personal loan for your move is the interest rate. Borrowers with excellent credit scores can score rates around 10 percent. Those with good credit scores often secure rates within the 13 to 15 percent range.
By contrast, average credit card interest rates as of December 2023 are 20.74 percent. Over the lifetime of a loan, just a few points can make a big difference in the amount of interest you’ll pay.
Personal loans can be obtained from banks, credit unions and online lenders. The application process is usually easiest with online lenders, but overall personal loans are much quicker than other loans. It can take as little as one day to get a personal loan.
Credit cards
Credit cards offer revolving debt, which means that — unlike personal loans — you don’t have to reapply for credit when you need more money. One of the biggest downsides is that credit cards typically have higher interest rates than personal loans.
Let’s say you’ve crunched the numbers and expect your total expense to be $3,000. The largest monthly payment you can afford is around $100. A personal loan with an 11 percent APR and three-year term will get you a monthly payment of $98.22. Over the life of the loan, you’ll pay around $536 in interest.
Most zero percent interest credit card offers run from 12 to 18 months. If you could afford to pay around $300 toward your balance every month, you could benefit from a credit card because you wouldn’t incur any interest. If not, a personal loan offers a lower payment and saves more than $400 over the life of your loan. Plus, you can’t be tempted to swipe a personal loan at the department store and add to your debt.
Relocation assistance
If you’re relocating for a job, ask your new employer if it will cover some of your relocation costs. Some employers offer a relocation package, which reimburses some or all relocation expenses, as an incentive for you to accept a job.
Alternatively, you can ask for a sign-on bonus or negotiate a higher salary, then use some or all of the extra funds to cover your moving costs.
The cost of moving
Although moving costs vary, here are seven common expenses to help estimate what your move might cost:
Hiring movers. This is one of the most important expenses you’ll make because, generally, you get what you pay for. HomeAdvisor found that the average cost of movers ranges between $900 and $2,400. Costs vary widely based on distance, location, how much you’re moving and if you elect for extra services.
Packing services. If you hire your moving company or someone else to pack up your home for you, you’ll have to deal with this cost. HomeAdvisor says the average cost of packing services is $1,000 for packing materials and labor.
Boxes. You will need boxes if you don’t hire someone for packing services. Boxes can generally be obtained for free from grocery or department stores. If you need containers for transporting fragile items, remember that durable plastic tubs can cost more than $20 each, depending on the size.
Travel. Gas, lodging and food can add up quickly. And if you’re flying, it’s easy for a small family to rack up over $1,000 for a one-way domestic flight.
Storage. If your move takes longer than expected you might have to put some of your belongings in storage. The cost of a self-storage unit varies widely and depends on the size and location. ConsumerAffairs says a self-storage unit that’s 10 feet by 10 feet has an average monthly cost of $160.
Item replacements. Odds are at least a few things will be broken during your move. Remember to set aside some money to cover replacements.
Deposits and fees. It’s possible that you may have to pay early termination fees for services like cable or utilities. You might even have to put down a deposit for services at your new place prior to moving in.
Instate vs. out of state moving costs
These are the average costs for local and interstate moves, according to HomeAdvisor. Local moving is any move under 100 miles within the same state and interstate or long distance moving across the country or over state lines.
Type of mover | Average charge | Extra charges |
|---|---|---|
Local/Intrastate | $50-$100 per hour | $25-$50 extra per additional mover |
Interstate/Cross country | $2,600-$6,900 per load |
Moving costs based on house size
These are average costs for moving based on house size, according to HomeAdvisor. The values are based on average hourly rates charged for a local move.
Size of house | Estimated time of move | Average price range |
|---|---|---|
1 bedroom apartment | 3-5 hrs | $150-$500 |
2 bedroom apartment | 4-7 hrs | $200-$700 |
3 bedroom apartment | 6-8 hrs | $450-$1,200 |
4 bedroom house | 8-12 hrs | $600-$1,800 |
The repeal of the moving expense 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 exclusion for qualified moving expense reimbursements and deductions are both suspended until 2025. The one exception is members of the military on active duty who move due to a military order.
