Ask Boo the Panda: Are personal loans for moving expenses a good idea?
In today’s Ask Boo, we look at the pros and cons of using personal loans for moving expenses. Whether you’re moving to a new place just across town or upping sticks and moving across the country, there’s no two ways about it: moving is expensive.
In fact, CompareMyMove lists the average cost of removals and postal redirection at £1,236.66 — a fairly big amount, especially when it comes on top of all of additional costs of moving, whether you’re paying stamp duty and solicitor’s fees or a deposit and the first month’s rent on your new place.
So, if the move is already stretching you a little thin, is it a good idea to use personal loans for moving expenses? We thought we’d break it down for you.
First of all, you have to consider if you can afford the new place and the repayments
This is the big question. Moving into a new place is often very expensive — there are new fixtures and fittings, decoration to do, deposits and down-payments to make and a whole host of unexpected costs — and a monthly loan payment might make your situation more difficult.
You don’t want to put yourself in a situation where you have to decide between paying the rent or mortgage and repaying your loan. However, if you’ve got a little wiggle room in your budget and you need to borrow the money to move, then personal loans for moving expenses are really no different to a personal loan for any other expense.
What if you can’t afford the repayments on personal loans for moving expenses?
Don’t panic. You’ve made a good call: taking on payments you can’t afford would only have caused trouble further down the line. You still have all of your usual options — a credit card, borrowing from friends and family or using your overdraft. Of course, these options have their own pros and cons, we’ve looked at them all in this article about emergency loans.
But there might also be other, more wallet-friendly options for moving home than the expense of a moving van. Have you got any friends or family with a van? Could they help you move for a smaller amount of cash or even a takeaway pizza? A couple of trips in a smaller van or a big car could save you a good amount of money.
If you have friends or family who’d be happy to help you move but don’t have a van, you could look into renting a van for the day. Large vans are available from around £30 per day, which could save you almost a thousand pounds compared to a removal company. Be aware though, that you and your friends will need to move everything into the van and unload it at the other end. It will be hard work, but it’ll save you some money.
Here are a few more of our top tips to save you money on moving:
- If you’re moving for work, check whether your employer offers relocation assistance, as some employers offer financial help with the cost of moving home.
- Declutter before you move! The less stuff you have to move, the cheaper it’s going to be in van rental, petrol, boxes, and time.
- Sell your old things. Not only will you declutter, but you’ll also have money to put towards the removal costs.
- Save money on boxes — hunt around. Ask neighbours, friends, local shops and even check Gumtree for free boxes. You’ll save money and help the environment.
- If you can, try and move mid-week. Van hire is usually cheaper during the week when people are at work. Plus, the roads will be quieter.
- Book in advance: if you need to use a removal service, be organised and book in advance. You’ll be able to book the day you need, will get cheaper rates and will avoid a last minute scramble.
- Check your utility bills — look for the monthly end-date. That way, you can time your move to happen before the date and avoid paying for a month’s worth of internet, TV, phone, etc when you’ll only need it for a few days.
If you’re thinking about personal loans for moving expenses and can afford the repayments, we’re here to help. The cash could be in your bank account the same day, if your application is signed and approved by 3 PM– which gives you enough time to book that moving van and spend the your last days in the house stress-free. Representative 49.7% APR.
- Author The Bamboo Team
- Posted 18 February 2019
