Personal injury accidents can take a huge toll on one’s life, not only physically and mentally, but financially as well. Emergency trips to the hospital and medical bills are expensive, and time off from work can cause a loss in wages as well. Often, those recovering from a personal injury accident find it difficult to keep up with monthly mortgage payments, car payments, cell phone bills, and other expenses while having to pay for medical bills or make up for lost time at work due to their accident.
There are cash advancements available to those struggling. These monies are called pre-settlement funds, or lawsuit loans, and are available to people who are having difficulty in surviving month to month financially due to their accidents. Advantages of applying for pre-settlement funds are the obvious alleviation of financial stress, but also, the opportunity of a better settlement. An advance can tide over someone who needs to make payments, and allow the plaintiff and their attorney more time in negotiation of a good settlement deal with the defendant.
While these advances can have immediate, short term benefits, it is wise to consider the disadvantages of taking out a lawsuit loan. Often times these loans are expensive, with interest rates tripling the amount borrowed. It can also take some shopping around to find a lender who will want to give out pre-settlement funds because many lenders are picky about the cases they accept. Lenders are only willing to issue pre-settlement funds on cases in which they are confident will settle. Often times plaintiffs who seek a cash advance must apply to multiple lenders before qualifying. Since lawsuit loans are relatively new in the world of lending, there is less government regulation on these types of loans, resulting in less protection for the consumer.
Although pre-settlement funds may sound enticing initially, they can be expensive in the long run and overall may not be worth the hassle. If you are considering this option in your pending personal injury case, be sure to do extensive research on lawsuit loans before entering into one.