Some people do not realize that while they are waiting for their settlement, the bills keep piling up. You may be expecting a significant payout, but what can you do right now?
Lawsuit loans have helped many people get the money they need fast. If you have expenses you cannot pay, check out our five reasons to opt for pre-settlement funding.
1. Pre-Settlement Funding Is Easy
These loans are cash advances that you get when you are waiting for a settlement. The funding process has a few steps, and then you get your money.
In this case, you are getting a loan on the money you expect to receive in the future. These can hold you over if you cannot work. It will help you pay the bills and stay afloat.
2. Pre-Settlement Funding Options Are Fast
When you need money fast, pre-settlement funding is a great option. You can expect to get your money in a few business days. If you need it sooner, sometimes the money can get wired to you.
When you apply for a regular loan with a bank, it could take longer to get the money. Sometimes the forms to fill out are long, and the amount you can borrow gets tied to several factors like your income, credit status, and time at your job.
3. No Credit Check
Depending on your credit check, going the traditional route for a loan may not get you cash. When you apply for a lawsuit loan, your credit does not get checked.
You won’t have to worry about having perfect credit to get the money you need. The lender bases the loan on your settlement.
4. It Can Buy Time
If you are counting on a lawsuit settlement so you can pay bills or have an income, pre-settlement loans can help. That can get you more time to consider a larger payout.
You can pay any urgent medical bills. That gives you time to negotiate for what you need, while not getting late fees on the money you owe now.
5. You Have No Savings
Almost 28 percent of Americans have no emergency savings. That means if you get injured and cannot work, you have no way to pay your bills.
Some cases take years to settle. If you have no savings or no savings left from fighting a lawsuit, you might not be able to wait for the settlement. When this happens, pre-settlement loans can get you out of a financial bind.
Know What To Expect
Some lawsuit loans can get expensive, so you need to know the fine print of the agreement you fill out. You will pay back the principal you borrowed, plus a funding fee. The interest rates can range anywhere between 27 and 60 percent, so don’t ask for more than you think you need.
These loans are unregulated by the government. You need to know if a pre-settlement funding loan works for your situation. If you enjoyed this article, check out the rest of our site for more legal tips!