Going to court costs a lot of money, even if you have an airtight case. If you have been injured and need to pay your medical bills now while waiting for a settlement, looking into a litigation loan can help you keep your finances stable.
Litigation loans, also known as lawsuit settlement loans, can provide you with the financial assistance you need in order to avoid going into debt while the court process moves forward.
What are Settlement Loans?
At their most basic, settlement loans work very much like any other form of credit—you apply for financing, then make periodic payments to reduce your debt. A few things separate a litigation loan from other unsecured loans, however. First of all, settlement loans tend to have more favourable terms.
This is partly due to the fact that lawsuit settlement loan companies know that the money is likely to come in once litigation comes to an end.
Rather than planning a loan with a term of five to ten years, a company that offers a litigation loan can charge lower interest and do a less invasive credit check because the incoming settlement is almost a guarantee of payment.
When Do You Need a Settlement Loan?
You might need to start looking for litigation loans for a variety of reasons. Essentially, any time you find yourself in a financial pinch due to court costs and have to wait for a settlement to come in, lawsuit settlement loan companies might be able to help you.
This could include personal injuries and accidents, workplace injuries, medical malpractice, vehicular accidents, or even inheritance cases.
In an ideal world, you would get the money you deserve before you have to pay your bills and make financial ends meet.
Until we find ourselves in that ideal situations, however, settlement loans exist to help people out of tight financial spots.
How to Apply
Applying for a lawsuit settlement loan is a very easy process. Once you have identified the lender you wish to work with, you can apply online and get a response within 24 hours in most cases.
Many lawsuit settlement loans use alternative methods to determine your credit worthiness, so the process of applying doesn’t even impact your credit score. In terms of fees, you will have to pay a low administration cost, but other than that you no hidden costs.
Some litigation loan companies offer an interest rate which decreases after the two-year mark, making it easier to pay off the loan over a long period of time.
This is an option you should discuss with your lender if you worry that there might be a delay in receiving your settlement.
If you have a large pile of legal bills and need money to make ends meet, a settlement loan should be able to help you.
These loans exist to help balance the financial scales for those in need and usually come with very favourable rates. There is very little reason not to apply if you need some money right away.