What You Need to Know About the Pros and Cons of Lawsuit Loans
Are you considering getting a lawsuit loan? Before you do, do you research and read about the pros and cons of lawsuit loans.
Are you interested in pursuing compensation for your injuries, but don’t want to pay the massive medical bills upfront? Do you wonder if there’s a way to pay for those expenses prior to reaching a settlement? If so, then you need to consider lawsuit loans.
Doing so can help you get the cash that you need in the short term to pay for medical bills and tend to your injuries. Getting proper medical attention isn’t just important for your long-term health, but for your lawsuit as well.
See below for an in-depth guide on lawsuit settlement loans and what the pros and cons are of them.
What Is a Lawsuit Loan?
Lawsuit loans are also known as pre-settlement loans. They are used to help those seeking compensation for injuries and damage in things like car accidents, slip and falls, workplace injuries, and so on.
Essentially, it gives you the opportunity to receive the funding you need while you await a settlement for your case.
Many people find themselves being forced to settle for a lower amount to not keep the lawsuit going for too long and compromise their finances. A lawsuit loan gives you the cash you need to draw it out for as long as possible.
It allows you the chance to get the money you need without having to make an out of pocket payment or a monthly premium while the lawsuit goes on. Better yet, you only have to pay back the loan if you win your case. No strings attached!
Be sure to reach out to a lawsuit loan lender to apply and see if you qualify for a pre-settlement loan.
The Pros and Cons of Lawsuit Loans
Now that you have a better understanding of what a lawsuit loan is, it’s time to get into the advantages and disadvantages of them.
Doing so can help you understand whether or not it’s the right choice for your situation. See below for a few of the pros and cons.
Pro: You Only Pay if You Win
One of the biggest advantages of receiving a lawsuit loan for your case is knowing you aren’t being tied down to it. If you win the case, then you can pay it back with the settled amount.
However, if you lose your case, then you don’t owe a single penny. You aren’t required to pay back the loan unless you win your case or reach a settlement.
This will give you total peace of mind throughout the entire process. You and your attorney will be able to focus on compiling evidence and doing all you can to build your case. Finances won’t be an issue during or after the lawsuit process.
Con: Lawsuit Fees
This isn’t necessarily a con, since anyone undergoing a lawsuit would be happy to pay back the lawsuit loan fees if they win their case. It’s a good problem to have.
However, it’s always nice to set the expectation for yourself if you win. You won’t merely just pay back the amount that the lender gave you, you’ll be paying back a few lawsuit loan fees.
However, if getting the thousands of dollars you need to strengthen your lawsuit means potentially paying some additional costs if you win, it’s well worth the investment.
Pro: More Time to Settle
Too many lawsuits end before they begin. One of the most common exercises by insurance companies is to drag out the process as long as possible, in hopes of bleeding out their opponent.
In other words, the longer the case goes on, you might be tempted to settle for a smaller sum of money to end the lawsuit and not leave yourself strapped for cash.
But with a lawsuit loan by your side, that will no longer be an issue. You’ll be able to wait it out for the right sum of money, compiling evidence all the while.
Con: You Have to Find the Right Lender
Lawsuit loans aren’t regulated like most other loans that you would apply for. Due to that fact, there are some illegitimate lenders out there looking to take advantage.
Fortunately, avoiding this issue is as simple as doing a bit of research on the lender beforehand. Look at online reviews from previous clients, scan their website for more information, reach out to them via a phone call to learn more about them.
As long as you take the time to research the company you’ll be receiving a pre-settlement loan from, you have nothing to fear!
Pro: No Financial Stress
Even though you’re fully dedicated to waiting out this lawsuit and receiving the compensation you deserve, life will still roll on as normal.
You’ll still be expected to pay your student loans, bills, rent, car loans, credit card charges, and so on. None of that will be put on pause during this process.
A pre-settlement loan will help negate the financial stress that’s often tied to a lawsuit. You’ll be able to go full steam ahead without worrying about the financial hurdles you’d otherwise be facing.
Find the Right Lender for Lawsuit Loans Today
Now that you have seen several key pros and cons of getting lawsuit loans, it’s time for you to start this process for yourself.
Be sure to read this article for more information on car accident lawsuits and what you should expect from the process. This will help you map out your plan of action.
For more inquiries, please be sure to reach out via our contact us page and we will be happy to assist you further.