Despite only one in 20 personal injury lawsuits going to trial, there is big money in personal injury lawsuits. The high cost of damages suffered leads to high valued settlement payouts. However, the injured party has to have the negotiating power to hold out for the settlement they deserve.
For many, the mounting financial pressure results in them agreeing to a lower settlement amount. If you are facing this situation, a lawsuit loan could be the answer you need.
Can I Borrow Money for My Lawsuit?
The short answer is maybe. If your lawsuit meets a list of criteria outlined by the lender, then you may be able to take out a lawsuit loan. Lenders typically look at the type of lawsuit you have and the likelihood that you will win.
What Is a Lawsuit Loan?
To understand what a lawsuit loan is, think of it as a cash advance against your future settlement payout. These types of loans are considered non-recourse. This means you won’t have to repay the loan if you don’t win your case.
Why Would You Apply for a Lawsuit Loan?
You can use your loan funding for a wide range of financial responsibilities. This can help reduce your stress levels, give you stronger negotiating power, and protect your current financial status.
Use your loan funding for any of these financial responsibilities.
- Medical expenses
- Living expenses
- Car loan
- Credit card bills
- Student loans
Should I Take Out a Lawsuit Loan?
Waiting for your personal injury lawsuit to get resolved can take months and sometimes years. Knowing what to consider helps you to decide whether not a lawsuit loan is right for you.
Lawsuit loans are expensive with high interest rates. They also require repayment when you win your case. This reduces the total amount you get to keep in the long run.
Not all types of lawsuits qualify for this type of loan. Even if you have the right type of lawsuit, the lender wants to reduce their risk by only lending to those that are likely to win.
Finally, the lawsuit loan industry is unregulated. This is drastically different from other types of lending that are heavily regulated. Because of this, some unsavory lenders look to take advantage of people in desperate situations.
How Can I Safely Borrow?
If you decide that a lawsuit loan is right for you. Look for a reputable lender who has a reputation for ethical lending practices. It can be difficult given the lack of regulation.
Read online reviews about other borrowers’ experiences. Research a lender’s track record with consumer advocacy groups like the Better Business Bureau.
Lawsuit Loans Could Help You
If you find yourself struggling to pay your bills while waiting for your lawsuit settlement, then a pre-settlement loan could help you. Taking out this type of loan can ease your stress by giving you an influx of emergency cash.
Check out our other informative articles that can help guide you through challenging times in your life.