Things To Consider Before Availing Lawsuit Loans
Legal battles are often time consuming and expensive. It becomes traumatic for people who are victims of personal injury cases. By the time judgment is heard and claims recovered from the insurance company or the opposite party, the victim has to undergo emotional, financial and physical stress. The family of the victim also suffers in the process. The pain is more when the victim is disabled during the accident and is unable to earn his/her living. At these times Lawsuit Loans help the injured a great deal. According to www.streetdirectory.com/etoday/avail-the-benefits-of-lawsuit-loans-today-ueowlw.html lawsuit suits are beneficial to people who have pending personal injury lawsuit. It is a form of a cash settlement to help them clear mounting bills.
Defining lawsuit loans
A legal proceeding can be time consuming and expensive. Those who are fighting for personal injury claims the expenses are higher in terms of medical bills, household maintenance, education bills, mortgage, personal loans and more. The case gets worse if the injured is disabled in the accident. To make situations unpleasant is the delay in the judgment. In such situations, you can opt for lawsuit loans to come out of the financial stress. The lawsuit loan is a cash advance to ease down your financial burden while contesting a case. In exchange for the advance, the lawsuit loan company claims all the eight to the settlement from the case.
Merits of lawsuit loans
Lawsuit loans help you get over the financial stress, giving your breathing space to cover the household expense, medical bills, mortgage payments and more.
It gives you time to negotiate a good deal as there is no hurry with your financial needs taken care off. The goal is not to drag the litigation but to get a fair outcome within the prescribed time. Now you and your attorney can work together to defend the case better. If the defendant denies a fair claim, then lawsuit loan is the only last resort to give you the motivation to go for a trial.
Demerit of lawsuit loans
To face a court proceeding, you need cash, and a lawsuit loan is not the only option to get you out of the financial stress, learn why
While returning the loan, you will be forced to pay you settlement amount or award for the loan offered by the lender. The amount to be repaid includes the principal, funding fee, and interest payment. Though, one advantage is you need not pay more than the settlement amount.
Personal injury cases take months or even years to settle. The interest rates can be anywhere between 27 and 60% per year. This means, on a loan amount of $25,000 the interest can be around $12,500 in a year alone. The lender compounds the interest and for two years it could be $32,000 plus the principal which is $25,000.
In the long run, avoiding a lawsuit loan could save you money on a long-term basis. Some of the other resources to try could be insurance, disability payments or soft loans from friends and family. Another option would be to opt for an installment loan at your neighborhood bank. Though, borrowing against property could be an unwise decision, despite the interest rates are lower, but the risk of losing your house looms large. If you are left with no alternative and want funds to maintain your livelihood, lawsuit loan is your last hope!