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The high seas, sun, 24/7 dining, and stops at exotic ports of call: What’s not to love about a cruise? Sometimes, the answer is the price. A cruise can be a big-ticket vacation item that’s a challenge to afford.

But for the people who crave an all-inclusive travel experience, there are smart ways to snag a deal. Whether your fantasy is navigating the dramatic Alaskan coastline or floating through the Caribbean’s crystal waters, there are hacks that can help make it a reality.

Read on to learn insider strategies for finding the cheapest ways to cruise.

Buyer Beware

First, a word to the wise: As just about every frugal traveler knows, sometimes deals really are too good to be true…or at least not all they’re cracked up to be. It’s important to read the fine print and be sure of what’s included and not included in cruise deals you may find.

When considering the cheapest way to cruise, you’ll want to think about airfare, meals, excursions, room type and location, and other amenities that can lead to upcharges. That way, you can budget appropriately and make sure you have enough money in your travel fund to ensure you can afford your trip.

You’ll also want to pay close attention to cancellation policies. Many people plan trips far in advance, and situations can change between the time you book and the time you are supposed to board the ship. It can be wise to consider the costs and benefits of trip insurance. Note: Some credit card travel insurance may have you covered; check with your card issuer for details.

Next, the money-saving tips.

1. Read Cruise News

There are countless sites and blogs devoted to the cruise industry, staffed by both insiders and frequent cruise passengers. These sites cover both industry trends as well as specific deals and offers from particular cruise lines. In addition to finding cruise deals, they are great for learning about unique cruise offerings and locales. Some noteworthy sites include CruiseFever, CruiseHive, and CruiseCritic.

2. Search the Travel Sites

CruiseDirect.com, CruisesOnly.com, Cruise.com, and others are searchable databases of cruise offers. They are similar to Expedia, Travelocity, and other general interest travel websites, except they are devoted to cruises. These sites typically have sections focused on cruise deals and may at times have exclusive offers that aren’t available elsewhere.

Cruise lines, like Carnival, Princess, and Royal Caribbean, also typically have their own deals section, which can be worth checking out.

3. Scan Social Media

To find cruise deals on social media, it’s a good idea to follow your favorite cruise lines’ official accounts on platforms like Facebook, X (formerly Twitter), and TikTok. You might also search for the hashtag #cruisedeals and related terms to discover promotions, giveaways, and last-minute sales.

4. Look for Bundles

Both travel websites and cruise lines themselves often encourage passengers to bundle a variety of services and amenities when booking. These cruise bundles can offer real savings. Some of the options that are typically bundled include airfare, meal and drink packages, transport to and from the ship, free WiFi, and more. (About that WiFi: While some cruise lines have free WiFi, others can charge around $20 or more per person per day for this.)

When evaluating these packages, it’s worth taking the time to review each item, what it includes (there are various levels of perks available on ships, after all), whether you really want everything in the bundle, and what it would cost if you were to purchase the items separately.

5. Travel With Friends

If you have a big family and/or lots of friends, or if the idea of going on a cruise with your coworkers isn’t terribly off-putting, you might be able to score a group rate on a cruise. For example, Norwegian Cruise Lines features a group deal that offers bonuses for every five cabins booked. People traveling on group deals may qualify for bonus packages that include food and drinks, excursions, free WiFi, and more.

Recommended: Creating a Travel Fund

6. Book Well in Advance…Or Last Minute

Popular cruises, particularly the more luxurious ones, tend to fill up quickly. And the best rates are usually available when tickets first go on sale, which can be as much as a year or more advance. After tickets begin to sell (often between November and March, when promotions kick in) and the sail date nears, prices typically start to rise. The other benefit of booking early is that you’re more likely to get your choice of cabin and dining options. Early bookers may also get access to other special perks, like free airfare, upgrades, and free drinks.

That said, there are also plenty of stories of people scoring incredible last-minute deals on cruises. As the departure date grows closer, if a ship hasn’t sold out, the cruise line may offer serious incentives in order to fill up those empty rooms.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

7. Sail During Shoulder Season

Determining peak cruising season, when demand is the highest, can be tricky because of all the variables involved. First and foremost (and perhaps most obviously), different parts of the world experience the seasons and corresponding vacations at different times. So peak season in one part of the world may be very different from peak season in another.

Many think that off-peak season, when demand is the lowest, is the best time to find a cruise deal, though that may not always be the case. If a cruise line cuts back on the supply of cruises too much because of seasonal drops in demand, there may not be many deals or even much availability to be found.

That’s why many point to “shoulder season,” the period between the peak and off-peak seasons, as the best time to find deals on cruises. Keep in mind that the weather might not be as great as it is during peak season, but you’re also more likely to avoid crowds both on the boat and on shore excursions. You’ll also want to consider seasonality when looking for the cheapest days to fly to and from your cruise’s point of departure and return.

8. Check for Special Discounts

Factors such as what organizations you’re a member of and where you live can help you save money on your dream cruise, whether that means exploring the Mediterranean or waters around Mexico.

You may find that belonging to a group like AARP can score you a cruise discount. In addition, some credit card issuers offer cruise benefits. There may also be general discounts for seniors, military families, teachers, and even frequent cruisers.

You might also be able to take advantage of resident cruise deals if you live in a particular area. Celebrity Cruises, for example, offers exclusive deals to residents of certain states, while Disney offers Florida residents up to 25% on select Caribbean cruises.

9. Pay in Full

Even if you’ve found a fantastic deal on a cruise, vacations are expensive, so it’s important to consider your financial options. If you don’t have the funds to cover the entire cost of the trip, then you may want to consider waiting until you’ve saved up enough cash to pay in full up front.

Keep in mind that if you put the trip on a credit card and carry that balance over from month to month, you’ll be paying relatively high interest rates, perhaps 20% or higher. That adds to the cost of the trip significantly, even if you’re using a cash back rewards credit card.

Some people opt to use personal loans for vacations, which typically come with lower interest rates than credit cards. But personal loans, though often more affordable than credit cards, aren’t free, and they’ll add to your vacation budget as well.

10. Maintain a Budget

When planning your cruise, it’s important to drill down and really think through the budget. If you don’t have a truly all-inclusive deal, you’ll want to to itemize everything, such as:

•   Cruise tickets

•   Flights

•   Ground transportation

•   Food and drinks

•   Excursions

•   Souvenirs

•   On-ship entertainment

•   Gambling

•   Pictures

•   Travel insurance

•   Gratuities

•   WiFi

•   International calls

•   Fees for any travel visas

•   Currency exchange

There are plenty of great budgeting trackers that can help you monitor spending on vacation and more. But when it comes to vacation planning, it’s best to earmark the money before you’ve spent it, add a cushion of 10% or 20% to cover the unexpected, and then stick to it. You’ll enjoy the vacation more knowing that you’ve got it covered and won’t stress out when it’s over because you’ve spent more than you can afford.

Also don’t forget to see how you might apply your credit card rewards for travel; you might be able to apply cash back or otherwise lower costs this way.

The Takeaway

Taking a cruise doesn’t have to be expensive. If you’re wondering how to get cheap cruise tickets, there are luckily myriad ways you can get cruise discounts, ranging from going during the off or shoulder seasons to bundling your vacation expenses.

The cheapest way to cruise may be to avoid paying with credit cards, personal loans, or other methods that will end up costing you in interest. Instead, consider setting a savings goal based on the expected cost of the cruise then opening a savings account earmarked for the trip. Choosing a bank that pays a competitive rate, and setting up a monthly automated transfer into the account, can help you reach your goal sooner.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How do you get the cheapest prices on cruises?

To get the cheapest prices on cruises, book during the off-season or “shoulder” season (the period between the peak and off-peak seasons). Look for last-minute deals, but also consider booking well in advance to lock in lower rates. Other tips for finding cheap cruises include: using cruise comparison websites, following your favorite cruise lines on social media, being flexible with your travel dates, and considering less popular destinations.

Do cruises go cheaper closer to departure?

Cruises can go cheaper closer to departure, especially if the ship isn’t fully booked, since many cruise lines will offer last-minute deals to fill remaining cabins. However, prices can also rise if the ship is nearly full. It’s a good idea to monitor prices and be ready to book quickly if you find a good deal. Always check for any restrictions or blackout dates.

How can I pay less for a cruise?

To pay less for a cruise, book early — cruise lines often offer big discounts when you book a year or more in advance. If you are flexible on dates, on the other hand, you may be able to get deals within 30 days of your departure. Cruise lines will often offer deep discounts if a ship hasn’t sold out. Also consider using credit card points or rewards to cover some of the cost, and booking through a travel agent that specializes in cruises (they often have access to lower bulk fares not available to the general public).

Photo credit: iStock/nantonov

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

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See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
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SOBNK-Q225-057

Does living on a budget sound like a bummer, all about scrimping and saving? It shouldn’t! A budget is really just a way to evaluate and keep better track of what money you have coming in and going out each month.

Having insight into the big picture of your personal finances can make it much easier to figure out where you may need to make tweaks so you can reach your personal and financial goals.

Rather than feeling restrictive, living with a budget can actually make your life easier and less stressful, while also helping you prepare for the future.

Here are some ideas to help get you going.

1. Determining What’s Coming In

The first step for creating a budget is to figure out how much money you are earning after taxes every month.

This might be easy for salaried W2 workers who automatically get their taxes taken out of every paycheck. You can simply look at what is coming into your bank account each month. It can be a bit trickier for 1099 freelancers who only see how much they are taxed at the end of the year.

For freelancers, there is a simple solution though: Using how much you made the previous year and what taxes you paid, you can then pay estimated quarterly taxes to the IRS. This can help give you a more accurate picture of how much you are earning on a monthly basis.

2. Listing Spending Categories

Next, you’ll want to figure out how much you’re spending each month.

This involves going through one month’s worth of expenses and dividing everything up into categories, then figuring how much you spend on each. You can do this by hand, make a budget in Excel, or use a budgeting app (your financial institution may even offer a free one).

Spending categories typically include necessities, such as rent/mortgage, transportation (like car expenses or public transportation costs), food, cell phone, healthcare/insurance, life insurance, childcare, and any debts (credit cards/ loans).

You’ll also need to list nonessential spending, such as cable television, streaming services, concert and movie tickets, restaurants, clothing, etc.

It’s also important to include monthly contributions to a retirement plan and personal savings in your list of expense categories.

If you don’t currently have an emergency fund in place (that could cover at least three to six months of living expenses just in case), consider putting it on the spending list, so you can start putting some money towards it each month. (Putting it in a high-yield savings account can be a wise move to help it grow. You might even automate your finances and have a small sum deducted right after payday and put into the account)

3. Seeing Where You Stand

Once you have a sense of your monthly earnings and spending, it’s time to see how your numbers line up with general budgeting guidelines. One budgeting method to consider is the 50/30/20 model, which looks like this:

•   50% of money goes towards necessities such as a home, car, cell phone, and utility bills.

•   30% goes towards your wants, such as entertainment and dining out.

•   20% goes towards your savings goals, such as a retirement plan, a downpayment on a home, emergency fund, or investments.

By looking at your income versus your expenses, it will be easy to see what, if any, changes need to be made.

4. Making Adjustments

There are many ways to adjust how much you’re spending in order to reach certain personal finance goals.

The easiest way to change your spending habits is to trim some of your nonessential expenditures. For example, perhaps internet and cable television costs $120 a month, and if cable is cut out, it would result in a savings of $130 a month.

Sticking to a budget may also require looking at the bigger picture and finding places for more significant savings. “Along with reducing small indulgences, cutting your rent can be an effective way to free up more cash in your budget,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi. This is especially true if your rent is eating up 50% or more of your monthly income. Or, you might want to consider trading in an expensive car lease for an older, pre-owned vehicle.

5. Negotiating With Credit Card Companies and Service Providers

If debt and bills are too high, then it’s going to be much harder to budget and save up money for the future.

One way to cut back is to negotiate with credit card companies and service providers. Credit card companies want their money back, so when cardholders call and say they can pay if some adjustments are made, they may be willing to help. You might ask if you can get your monthly payment or interest rate reduced, or if it’s possible to remove late fees.

Cardholders can ask for their monthly payment to be lowered, see if their interest rate can be lowered, and/or ask if it’s possible to remove late fees.

It may also be possible to lower monthly bills for internet, cable, streaming services, medical bills, and car insurance. For instance, if you see a promotion going on for cable and internet, you can always ask your cable company if they can apply that promotional rate to your account.

You can also use a car insurance quote comparison tool to find a lower car insurance rate, or call up a hospital to negotiate a medical bill.

6. Taking on a Side Gig

Once you set up a living budget, it may seem clear that additional income could be a big help. If you have the time and energy, you might take on a low-cost side hustle to bring in more money. Some ideas include:

•   Selling things on eBay, Craigslist, or Facebook Marketplace

•   Having a garage sale

•   Creating an Etsy store and selling homemade goods

•   Driving for a rideshare or food delivery service

•   Giving music lessons

•   Renting out a room on Airbnb

•   Walking dogs

•   Cleaning houses

•   Babysitting

•   Handling social media for small businesses

•   Selling writing, photography, or videography services to clients

Setting aside additional income for necessary expenses and future goals, and not spending all of the money on immediate wants, can be a big help when it comes to living on a budget.

Recommended: How to Make Money From Home

7. Using Cash Whenever You Can

It’s easy to spend money when only using credit cards and debit cards. Whenever possible, consider using cash, as it makes it easier to see the impact of your spending. You might be less likely to go into debt since money doesn’t seem invisible anymore. Taking out enough cash at the beginning of the week to cover your daily expenses could help you stick with your budget.

The Takeaway

Living on a budget doesn’t have to feel onerous and restrictive. In fact, the process of setting up a budget and sticking to it every month, can eventually free you from financial burdens and help you reach your life goals.

Getting started involves listing everything that is coming in and everything that is going out each month. The next step involves figuring out where you stand, and what you can do to get closer to your personal and financial goals. This may involve cutting back in some areas and also finding some ways to boost your income.

Keep at it and soon you will be in control of your finances, rather than the other way around. The right banking partner can also help you track your income and spending and stay on top of your budget.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What is the 50-30-20 budget rule?

The 50-30-20 budget rule is a simple financial guideline that divides your income into three categories: 50% for essential expenses (like rent and groceries), 30% for discretionary spending (like entertainment and dining out), and 20% for savings and debt repayment. This rule helps maintain a balanced budget, ensuring you cover necessities, enjoy life, and save for the future, promoting financial stability and peace of mind.

What are the 4 A’s of budgeting?

The 4 A’s of budgeting are: Accounting, Analysis, Allocation, and Adjustment.

•   Accounting: Track your income and expenses to understand your financial inflows and outflows.

•   Analysis: Review your financial data to identify patterns and areas for improvement.

•   Allocation: Distribute your funds to different categories based on your priorities and financial goals.

•   Adjustment: Regularly update your budget to reflect changes in your financial situation and ensure you stay on track.

These steps help you create and maintain a practical, effective budget.

How to survive on $1,000 a month?

Surviving on $1,000 a month requires strict budgeting and prioritizing needs over wants. Start by covering essential expenses like rent, utilities, and groceries. If necessary, look for ways to lower some of these fixed costs, like taking on a roommate or moving to a cheaper area. You may also need to reduce nonessential spending (like dining out and subscriptions), use public transportation, and shop secondhand whenever possible. Consider side gigs or freelance work to supplement your income.

About the author

Kylie Ora Lobell

Kylie Ora Lobell is a personal finance writer who covers topics such as credit cards, loans, investing, and budgeting. She has worked for major brands such as Mastercard and Visa, and her work has been featured by MoneyGeek, Slickdeals, TaxAct, and LegalZoom. Read full bio.

If you’re considering a small business loan, it’s important to familiarize yourself with the different types of small business loan fees. In addition to interest rates, fees can impact how much a small business loan ultimately costs.

Lenders charge fees on small business loans to cover a variety of costs, like loan application and origination, check processing, and underwriting, and you could also face fees for late payment or prepayment. Which types of fees apply will vary depending on which lender you use and the type of loan you get.

Keep reading to learn more on the different types of small business loan fees and additional funding options available for small businesses.

Why Choose a Small Business Loan?

No matter how fantastic an idea may be, in most cases, it can’t become an actual business without the working capital to get it off the ground. If you’re not yet ready to pitch investors and don’t have the personal funds to bootstrap your business, you may want to learn about how a small business loan can help you turn your business idea into a reality.

Of course, small business loans are for more than just startups. Whether you’re looking to hire more employees, purchase more equipment or inventory, or just scale your idea from your bedroom to a co-working space, small business loans can provide the capital to make it happen.

Some reasons a small business loan may be right for you include:

•   You want to build business credit, potentially allowing you to qualify for larger loans in the future.

•   You want to scale your business.

•   You want to make your business more efficient with new equipment.

•   You want to purchase more inventory.

•   You want to hire and train more employees.

Before taking out a small business loan, though, it’s important to ensure you have the financial foundation to manage your loan debt.

Recommended: 10 Things Business Loans Can Be Used For

Small Business Loan Rates and Fees

Here are some common fees associated with small business loans.

💡 Recommended: Business Loans for Bars

Application Fee

Lenders incur certain fees when processing your application (e.g., credit checks and property appraisals). This fee covers those costs, and it will apply regardless of whether your application is approved.

Origination Fee

Lenders charge origination fees to cover their administrative costs, such as phone calls, emails, and interviews necessary to finalize a small business loan. The amount of this fee varies from lender to lender.

Check Processing Fee

If you make your loan payments via check, you may be charged a fee to cover the time and labor it takes to process a check. You may want to keep this in mind when deciding how you’ll make your loan payments.

Guaranty Fee

If you’re taking out a loan through the Small Business Administration (SBA), you’ll likely have to pay a guaranty fee. While the SBA guarantees loans, it doesn’t make loans, and thus generally assesses this SBA loan fee for its involvement.

Late Payment Fee

Like many loans, small business loans typically charge a fee when you make a late payment. You’ll want to ensure you set up a plan to make your loan payments on time to avoid this fee.

Underwriting Fee

The process of underwriting can be tedious — your lender needs to comb through your business’ finances and review market research and historical trends. The underwriting fee covers the cost of performing this task. It could either be charged as a percentage of the loan amount or a flat fee.

Prepayment Fee

Some lenders charge you for paying your loan off too early. They may do this for a variety of reasons, but one might be because they lose money in interest charges when you pay your loan principal before it’s due. This is an important fee to be aware of when mapping out your payment plan.

Recommended: Guide to Typical Small Business Loan Requirements

Additional Funding Options

If these fees don’t sit well with you, there are other options to consider that may make funding your business more accessible to you.

Family and Friends

Many people start their business with family loans, which is essentially money borrowed from family and friends. Using these individuals as initial investors can help you stay out of commercial debt, meaning that you can wait to apply for a small business loan when you might need to borrow a larger sum.

However, going into business with loved ones could be a risk. It might sour the relationship if things go south.

Crowdfunding

A number of small businesses have successfully been funded through sites like Kickstarter, GoFundMe, and Indiegogo. A great idea with a strong marketing plan could generate enough excitement and financial support to get things going.

Keep in mind that crowdfunding sites generally require a percentage of the funding received. Additionally, there could be a risk of idea theft or plagiarism by putting your idea out there early.

Credit Card

You could turn to credit cards as a quick route to getting capital for your business without a lengthy application process. However, interest rates may be high. Further, carrying significant credit card debt could potentially impact your credit score, affecting your future chances of qualifying for loans.

Recommended: Comparing Personal Loans vs. Business Loans

The Takeaway

Small business loans can charge a variety of fees, including application fees, origination fees, underwriting fees, guaranty fees, and others. Some fees are unavoidable, including bypassing check processing fees by opting for another payment method and steering clear of late fees through consistent on-time payments. Which fees will apply will ultimately depend on the lender and loan type, but fees can play a role in how much a small business loan ultimately costs.

If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.

FAQ

What are the most common fees associated with small business loans?

Common fees include application fees, origination fees, underwriting fees, guaranty fees, and administrative fees. These charges can vary depending on the lender and loan type. It’s important to review the fee structure before committing to a loan.

How do origination fees impact the total cost of a loan?

Origination fees are typically charged as a percentage of the loan amount and are deducted from the loan proceeds. This means you’ll receive less than the total loan amount, effectively increasing the cost of borrowing.

What is a guaranty fee, and when is it applicable?

A guaranty fee is commonly associated with SBA loans and is charged to cover the government’s guarantee of a portion of the loan. This fee is usually a percentage of the guaranteed portion and can add to the overall loan cost.

SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOSMB-Q225-029

Moving can fire up a rollercoaster of emotions. The early rush of excitement may give way to stress over the looming to-do list of all that needs to happen before the big move.

Like any life transition, moving requires a lot of preparation. Thankfully, there’s no shortage of ways to help streamline the process.

Below are some tips that could make moving more efficient, including a guide to common costs to prepare for.

How to Streamline a Move

Here are a few helpful suggestions whether you’re easing into a new townhouse, apartment, condo, or home.

Get Rid of Unwanted Items

Moving is a chance to let go of items that have gone unused for months or years.

In addition to being able to get rid of unwanted “stuff,” decluttering can help you cut back on moving expenses. With fewer things to move from point A to point B, there’s less need for packing materials or an extra large moving truck. It may even help make the move speedier and more cost-effective, since there’s less stuff to carry (or pay someone else to carry). What’s more, reducing how much you have can also help ensure your new place won’t feel overstuffed.

Prepare Early

As you declutter, it can be useful to identify boxes and packing materials needed during the move, such as packing tape, markers, labels, scissors, newspaper, and bubble wrap. Why spend money on new cardboard boxes when there are likely unused boxes already lying around your home or at friends’ places? A visit to local recycling drop-off points may be in order, as it’s possible they’ll have free cardboard boxes available there, too.

Consider starting off your packing a few weeks ahead of time, with non-essential items like out-of-season clothes or kitchenware that’s rarely used. And consider taking photos of all valuable items as you go. This way, if anything breaks or movers damage something during the move, it will be easier to file a claim and receive reimbursement for it.

Tie Up Loose Ends

Moving to a new area? Consider making a list of everyone you’ll want to contact once you’re settled in your new place.This may include:

•   Friends and family members

•   U.S. Post Office

•   Employers

•   Credit card companies and other financial institutions

•   Service providers (e.g., water bill or internet)

If you’re hoping to keep utilities or services with a specific provider, it may help to call ahead of time to verify if those services are offered in the area you’re moving to and if the service can be transferred to your new address on or after move-in day.

Keep in mind if you’re starting a new service with a new company, you may need to notify them weeks in advance so they have enough time to schedule a technician’s visit or mail out the necessary equipment.

If you’re leaving the region, you’ll also want to make a note to cancel recurring memberships at local-only businesses, such as gyms and fitness centers.

Organize Moving Documents

From leases to service contracts to quotes from moving companies, there’s a lot of paperwork to manage with a move. It can help to keep all important documents organized in a single folder (and be sure to print out a copy of any documents sent to you electronically). Some paperwork to include in the moving folder could be:

•   Old leasing agreements

•   A new signed lease (if renting again)

•   Invoices from professional movers

•   Receipts associated with the move

The paperwork may even come in handy after you move. Members of the U.S. Armed Services may be able to deduct moving expenses, for example. And some companies will reimburse employees who are moving to accept a new job for common moving expenses. Talk to your human resources department to find out if you qualify and which receipts or invoices will be required for documentation.

Prepare a Tip for the Movers

For those who plan to hire professional movers, setting aside cash in an envelope could help when it comes time to tip. Often, people tip their movers if they’re happy with the job they completed. Taking out cash the day before a move can simplify tipping, as it’s one less thing to think about during moving day.

Recommended: The Ultimate Moving Checklist

Common Moving Expenses

When budgeting for a move, it can be useful to plan for expenses that can add up quickly.

Understanding Professional Moving Costs

If you’re moving yourself, plan on paying an average of $60 per day to rent the truck, and budget more for mileage, gas, tolls, and other expenses.

If you’re hiring professionals for the job, you can expect to pay quite a bit more. An in-town move that uses a team of two movers could cost an average of $80 to $100 per hour, according to Consumer Affairs. Moving to another state? Be prepared to spend upwards of $5,000 or more, depending on how far you’re going and the amount of stuff you’re hauling.

You may also want to consider whether to budget for packing services, which typically runs anywhere from $350 to $600, and moving insurance, which protects you in case your items are lost or damaged during the move.

If you’re looking to save a little money — and your schedule is flexible — you may want to look into moving during the middle of the week or middle of the month, when demand tends to be lower.

Estimating Transportation Costs

In addition to budgeting for the cost of moving your things, it’s good to calculate the expense of transporting yourself to your new home. Be sure to factor in expenses such as flights, lodging, food, rental car, and gas.

Other Supplies and Expenses

You might already be loading up on bubble wrap, packing tape, boxes, and labels. But there may be other moving-day essentials to consider.

1.    Cleaning supplies: Many landlords expect outgoing tenants to leave a property just as they found it: clean and empty. Be sure you have a mop, broom, cleaners, and sponges on hand.

2.    Repairs and renovations: Whether you’re patching holes in your old place or making upgrades in your new home, consider budgeting for any renovations or repairs.

3.    Furniture and other home items: You may find that when you move into your new space, you need to buy some new furniture. You may want to set aside a little extra for these purchases.

4.    New license and vehicle registration: If you’re moving across the country, you may need to calculate the cost of getting a new driver’s license and registration in a different state. Fees for getting a new license and vehicle registration vary by state.

Recommended: Things to Budget for After Buying a Home

The Takeaway

Whether you’re relocating across town or across the country, moving can be exciting. But it can also be stressful and expensive. To help streamline the process, you can remove and donate any unwanted items, assemble your supplies and the movers’ tip ahead of time, organize all the moving documents in one place, and alert family, friends, employers, and creditors of your new address.

It also helps to prepare your budget. A DIY move is often the most affordable option — on average, it costs around $50 per day to rent a truck, which does not include mileage, gas, tolls, and other expenses. A professional mover costs substantially more. An in-town move that uses a two-person team may cost around $80 to $100 per hour, but that price could climb into the thousands for an interstate move.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

How long before you move should you start packing?

A good rule of thumb is to start decluttering and getting rid of unwanted items around 6 to 8 weeks before your move-out date. Two to three weeks before you move, you’ll want to start packing up your belongings.

Which room should I pack first when moving?

In general, it’s a smart idea to pack your attic, basement, garage, and other storage spaces in your home first. Then, focus your efforts on lesser-used rooms, such as a guest bedroom or dining room. Finally, as your moving date nears, start packing up the rooms you use more frequently, such as your bedroom, kitchen, and bathroom.

What is the hardest room to pack when moving out?

In many cases, movers find that the kitchen and dining room are the most challenging spaces to pack up. That’s because they usually contain an assortment of fragile pieces — think glasses, dishes, and cookware — that require careful wrapping and handling.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-017

There’s no doubt that most Americans love their plastic.

When used responsibly, credit cards can be one way to build credit.

However, many people run into issues when it comes to paying off their credit card balance each month. Some 48% of credit card holders carry some sort of debt from month to month, according to a 2024 Bankrate survey. And as of February 2025, the typical American owed around $6,455 in credit card debt.

Although carrying the balance isn’t necessarily an issue, not paying it off every month may cause interest to accrue. That in turn could make a balance more challenging to pay off.

But by understanding the effects of carrying a balance, you can start to figure out a strategy to paying off your credit card debt.

The Effects of Carrying a Credit Card Balance

Carrying a balance on a credit card comes with some potential financial consequences. Let’s take a look at them.

Impact on Credit Score

Can your credit score take a hit when you fail to pay off a credit card balance? Possibly. Nearly one-third (30%) of your FICO® Score is based on how much you owe to creditors, which is often referred to as a credit utilization ratio. This ratio is the amount of revolving credit you’re currently using divided by the total amount of revolving credit available to you.

You may notice that when you carry a balance on a credit card, your credit score could dip by a few points. Often, the drop is temporary and your score may start to go up again once you pay off the balance.

Accrued Interest

If you’re carrying a credit card balance, you may also want to be mindful of accrued interest. This is the amount of interest that builds up in between payments. Most credit cards charge compounding interest, and the majority of credit cards compound interest daily. Therefore, if anything is owed after the payment due date, the balance can easily start climbing.

The amount that accrues will depend on the balance and the interest rate. You can use a credit card interest calculator to get an estimate of how much interest has added to your balance.

If the balance is paid off in full, interest won’t accrue (not until the next charge is made, at least).

Strategies to Help Reduce Credit Card Debt

Depending on how much you owe, paying off credit card debt can seem like an uphill battle. But fortunately, with planning, commitment, and tools, it can be achieved. Here are a few strategies you may want to consider.

Budget to Repay Credit Card Debt

When you’re looking to pay down credit card debt, rethinking or creating a budget can be a natural starting point. You can record this information in a spreadsheet or a spending tracker app, whichever is easier for you.

You may also want to incorporate a debt repayment strategy into your budget to accelerate the process. If you’re someone who is motivated by seeing fast results, you may want to consider the snowball method of repayment. This strategy prioritizes paying off credit cards with the smallest balances first. Once you pay down the smallest balance, you move on to the second smallest balance.

The avalanche approach, on the other hand, calls for prioritizing paying down credit card balances with the highest interest rates. Once you pay off the balance with the highest interest rate, you move on to the next highest interest rate, continuing until all debt is repaid (while making at least minimum payments on all other balances, of course).

Both debt repayment strategies have advantages and disadvantages. It’s a good idea to consider which method you’ll be most able to stick with, or use them as inspiration to create a plan that will work for you.

Open a Balance Transfer Credit Card

Another option to consider is to open a balance transfer credit card. The idea is to open a new credit card with an introductory interest rate that is significantly lower than your current credit card interest rate. This can allow you to pay off your credit card balance at a lower rate as long as you pay it off in the introductory time frame.

You can potentially pay off your balance within a shorter time while saving money on interest. It’s important to note that the low-interest rate on balance transfer credit cards is usually only offered for an introductory period, usually between six and 18 months. Once that period expires, the rates typically increase.

If you plan to repay the balance before the introductory period ends, a balance transfer credit card might be worth pursuing. Make sure to account for a balance transfer fee, which is usually 3% to 5%.

As with any other credit card application, your credit history will determine if you qualify and what rate you’ll receive. If your credit isn’t ideal, this might not be an option.

Make Extra Payments

If you don’t want to open a new credit card, you can make extra payments to reduce interest costs. Again, credit card interest is typically calculated on the account’s daily average balance. Therefore, by making one or more extra payments throughout the month, you can lower the total interest accrued by the time your bill is due.

Even if you can only put a few extra dollars toward each payment, it can help minimize the interest cost.

Use a Personal Loan

If you have high-interest credit card debt, a debt consolidation loan could be an option worth considering. Consolidating your debt into a single loan may help streamline finances and include other benefits, but it isn’t a magic cure-all. A loan will not erase your debt. However, it might help you get to a fixed monthly payment and reduced interest rates.

It’s important to compare rates and understand how a new personal loan could pay off in the long run. If your monthly payment is lower because the loan term is longer, for example, it might not be a good strategy, because it means you may be making more interest payments and therefore paying more over the life of the loan.

The Takeaway

Having a balance on a credit card doesn’t pose an issue, but not paying it off every month can have an impact on your finances. Interest can accrue, which in turn could make a balance more challenging to pay off. And depending on your credit utilization ratio, your credit score could temporarily hit if you carry debt from one month to the next.

If you’re looking to reduce a credit card balance, there are strategies that can help. Examples include creating a budget, making extra payments, or opening a balance transfer credit card. If you have high-interest credit card debt, a debt consolidation loan could help streamline finances into a fixed monthly payment.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

FAQ

Is it better to pay credit cards in full or carry a balance?

Generally speaking, it’s a good idea to pay off your credit card balance in full each month, if you’re able to. Doing so helps you avoid paying interest charges and accumulating debt.

Is it bad to keep a $0 balance on a credit card?

Having a zero balance on your credit card isn’t a bad thing. In fact, consistently paying off your balance can be a sign to lenders that you are using your credit cards responsibly.

Does carrying a balance affect my credit score?

Short answer: Yes. Carrying a balance can impact your credit score. If you have a large balance, for example, your credit utilization rate may go up, which can negatively impact your credit score.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-015