Paying for your relocation
by Bill Rogers
Moving is for certain a very stressful life event that you can go thru and especially if you really aren’t confident that you can pay for it. For some of us this event can make you move because of a new job or for some personal reasons, and there can be for all variety of reasons and for a move the price can be determined by the size and timeline of your move.
As the results of recent tax reforms you can no longer deduct any moving expenses. That which depending on how much help you can get from your family or close friends or even the new employer , the entire cost of the move might have to literally rest on your own shoulders. You can be thankful for a quick few options that might help ease the financial burden of moving.
Facts about the repeal of moving expense deductions
From the previous version of the law, tax payers were allowed to deduct some of their moving costs for the moving of their goods and certain travel expenses. For as of 2018, exclusion for a qualified moving expense reimbursements and the deductions are now suspended until the year 2025. The only one exception is for the military or on active duty whom move due to a military order.
* If you moved during the year 2017, you can still be able to deduct the expenses on your 2017 return.
How can I pay for my move
Personal loan
The best ideal way to pay for the move is upfront, however that is not always possible. If you really need to do financing for some or all of the move, a personal loan may be one of your best options to consider. Personal loans can be secured or unsecured loans that are paid off in equal installments and this is known as an installment debt. The life of this type of loan is between two to five year terms. The monthly note to pay the loan will include both principal and interest.
The main benefit for using your personal loan is to move you and the interest rate. Borrowers with excellent an credit score usually get rates around 10%. Those with good credit fall in the 13% to 15% range. With using a credit card, good credit will get you a rate in the lower 20s. Over the life of the loan, just a few points can make a big difference in the amount of interest that you will pay.
The personal loan can be arranged thru your local bank, your credit union at your work etc. The application process is usually easiest thru an online lender, however overall they’re much quicker then other loan avenues.
What about those credit cards ?
A credit card or sometimes multiple cards might seem like the best way to pay for your relocation quickly. You might even think of about the potential to earn those rewards in the process. However, it’s not the best way to go.
Credit cards offer revolving debt, which means that different from personal loans, you don’t have to reapply for credit when you need some more money. The big downside to that , really is the higher interest rate. Your good credit score will get you a card with the APR around 18% to 20%, while the personal loan can be closer to 10%.
Personal Loan
Monthly payment Details Term Interest Paid
$98.22 11% APR 36 months $535.78
Credit Card Loan
Monthly payment Details Term Interest Paid
$120 12-month 0% intro
APR, then 21% 36 months $979.92
Credit Card Loan
Monthly payment Details Term Interest Paid
$300 12-month 0% intro
APR, then 21% 10 months $0
Let us say you’ve ran the numbers, and you expect the total expenses to be at $ 3,000 Dollars. ( This is a really good conservative number for an interstate move.) And the largest monthly payment you can afford is around $ 100 Bucks. The personal loan with an 11% APR and a 3 year term will get you the monthly payment of $ 98.22. The whole life of the loan, you’ll pay about $ 536 Dollars in interest.
Most )% introductory credit card offers can run from 12 to 18 months. So if you can afford to pay around $ 300.00 towards your balance every month , you could benefit from a credit card because you will not incur any interest. If not, a personal loan offers a lower payment and really saves you more then $ 400 Dollars over the life of the loan. And a plus, you can’t be tempted to swipe a personal loan at your local department store to add to your debt.
The real bottom line is:
really only use the credit card with a 0% introductory interest rate offer for larger expenses, like your relocation, when you can afford to pay several hundreds of dollars on your balance every month. Ideally, you should pay that off completely before that great introductory offer ends.
Remember ask about relocation assistance
If you’re relocating because you must for your job, don’t forget to ask about moving assistance . This can be difficult to ask fpor the help for sounding greedy and so on, but remember, the worst that your new boss can say is no.
The real brass tacks cost of relocating
Consider this: The experts at the American Moving & Storage Association, Inc recently said that the average cost of an interstate move will cost about $ 4,300 Dollars.This my friend is no small expense. Even if within your state can cost on average about $ 2,300 Dollars.
Think about this, every move is unique and none are the same however, here are 6 common expenses that determine what the cost of your relocation might be.
1: Your movers. Hiring a mover is one of the most important expenses you’ll make and – you get what you pay for as well. Eastern Connection Movers said and based on the moves that they do the average cost to move is around $ 800.00 Dollars, but that can very on and based on the location, travel and the size of the move that are transported.
2: Travel. The gas, lodging, and the food can add up very quickly. If you’re flying figure more cost for it’s very easy for a small family to rack up over a grand in these travel expenses.
3. The boxes needed. Boxes usually and generally can be obtained for free or a small cost. You can pick up free boxes from your local grocery store or department store and the best time to get these freebies is at night when they are stocking the shelves. If you must pay for boxes they can be purchased thru your moving company.
Storage costs. If for some reason your moves takes longer then expected because of closing or the settlement is delayed on either end you might have to place your belongings into storage and this cost will be added to the cost of your relocation. These cost vary upon the town or city you are in or moving to.
Replacement cost of your items. Odds are that at least one item may be broken during your move and the your mover does have the basic carrier’s legal liability which is for out of state moves 60 Cents per pound per article or local movers 30 cents per pound per article and this adds up to really little coverage. What it’s suggested is ask your mover for additional coverage which can be purchased either thru them or an outside carrier for an additional cost. The cost of the additional coverage will be determined on the amount of additional coverage that you would declare.
The average cost of paying for a moving service varies by the state.
Here is a table to help you calculate how much you may have to pay the moving company to move you. This table covers both out of state moves and local ones.
State Avg reported cost Typical range
Alabama $947 $599 – $1382
Alaska $829 $444 – $1215
Arizona $689 $447 – $949
Arkansas $829 $444 – $1215
California $755 $341 – $1170
Colorado $550 $319 – $786
Connecticut $829 $444 – $1215
Delaware $829 $444 – $1215
D.C. $902 $511 – $1293
Florida $917 $497 – $1381
Georgia $800 $464 – $1188
Hawaii $829 $444 – $1215
Idaho $829 $444 – $1215
Illinois $701 $355 – $1047
Indiana $573 $294 – $852
Iowa $829 $444 – $1215
Kansas $1184 $1135 – $1282
Kentucky $829 $444 – $1215
Louisiana $709 $376 – $1291
Maine $829 $444 – $1215
Maryland $931 $582 – $1285
Massachusetts $829 $444 – $1215
Michigan $746 $442 – $1086
Minnesota $586 $384 – $805
Mississippi $829 $444 – $1215
Missouri $574 $334 – $832
Montana $829 $444 – $1215
Nebraska $829 $444 – $1215
Nevada $664 $472 – $856
New Hampshire $829 $444 – $1215
New Jersey $829 $444 – $1215
New Mexico $829 $444 – $1215
New York $1075 $672 – $1502
North Carolina $1050 $649 – $1555
North Dakota $829 $444 – $1215
Ohio $358 $255 – $512
Oklahoma $2197 $1067 – $3327
Oregon $846 $422 – $1336
Pennsylvania $807 $567 – $1350
Rhode Island $829 $444 – $1215
South Carolina $647 $471 – $955
South Dakota $829 $444 – $1215
Tennessee $777 $288 – $1294
Texas $655 $385 – $924
Utah $681 $542 – $821
Vermont $829 $444 – $1215
Virginia $1359 $896 – $1909
Washington $1029 $642 – $1416
West Virginia $4062 $4062 – $4062
Wisconsin $415 $300 – $542
Wyoming $829 $444 – $1215
For further information to help you move or to book a move visit us at: Eastern Connection Movers
