Move-In Costs May Not Justify Taking Out A Payday Advance

Taking out a payday advance for an immediate cost may put some people at an advantage. But is it smart to borrow this way to pay move-in costs on a new place? Most landlords require twice the cost of the rent upon move-in. Meaning, if the rent on the new home you want to move into is $1500.00, you will need to come up with twice that much ($3000) to secure the place.

If you are not able to come up with the amount of cash that it takes to move-in, maybe you should reconsider moving. Although you may want a bigger or newer place to live, if you can’t afford the moving expenses, you may not be able to afford the move. If you feel confident that you can handle the rent, utilities, and moving expenses but are just a couple hundred dollars short, a payday advance may be a good option; considering you are able to pay it back within a few weeks or with your next paycheck.

Taking out a payday advance because you are scrambling may not be smart

On the other hand, if you are scrambling to figure out how you will come up with the cost of moving in, maybe you should hold off. Consider staying where you are and giving yourself the chance to save up your security deposit as well as an emergency fund. Look at local ads for housing and have a number in your head as to how much you will need to save. Don’t get sucked into a price higher than you know you can afford. Swimming pools, fancy backyards, upgraded kitchens and bonus rooms are all reason why you may push the limit on how much you are willing to pay. Carefully consider your budget and be realistic about how much your finances say you can pay every month. And…think about the following;

1) Consider Your Personal Circumstances- Will you have a roommate? If so, you may be able to afford a more expensive place. If you have kids, you will need more rooms. If you are bringing your pet with you, chances are you will have to pay a pet deposit or extra rent every month.

2) Consider Your Financial Limits- Most landlords will require that you make at least three times the amount of rent you will be paying. If you have a roommate, half of your income will need to be three times as much as your portion of the rent. Knowing your limits on how much you can realistically afford will keep you from struggling every month to pay your rent. You don’t want to find yourself in a position where you are visiting the payday loan lender every month because you can’t afford your rent.

3) Consider The Cost Of Utilities- It’s not just your rent that will go up….your utility bills may rise as well. Consider having to heat or cool a bigger house. Is there grass to water and a pool to filter? This can have a dramatic impact on how much more you will actually be paying each month.

4) Consider Other Expenses- Don’t forget all the other expenses you have aside from the cost of rent and utilities. Groceries, gas, clothing and children’s expenses are all things you cannot erase from your budget should you choose to pay more in rent.

5) Consider The Extra’s- Do you really want to give up vacations, gym memberships and nights out with friends so you can pay for a more expensive home or apartment? You need to factor into your budget that portion of your income that goes to non-essential costs. Often times we don’t consider those expenses part of our budget but when it comes to paying for move-in costs, will you still be able to afford those extra’s? Short-term payday advance loans are not meant for a night out. They are meant for financial emergencies and unexpected costs.