Should You take a Lawsuit Loan?
Say you have filed for a personal injury lawsuit and in urgent need of money, then you may be planning to apply for lawsuit loans over at mycaraccidentcashadvance.com. While such company is respected and trusted, it is still wise if you would allot time in doing research. As much as possible, you must fully understand the cost entails in the loan to negotiate with best terms.
What Exactly is a Lawsuit Loan?
Using a lawsuit loan, you’ll be able to borrow cash against the settlement or the judgment you are expecting to obtain from a lawsuit. These are widely used among plaintiffs or victims of personal injury cases who have lost their income or have incurred significant medical and hospital bills as a result of injury. Plaintiffs are typically seeking lawsuit loan in an effort to cover expenses such:
- Day-to-day expenses
- Mortgage payments
- Medical bills
- Car loans
Is it Your only Option?
While lawsuit loans can supply you with the finances you need, taking such can be expensive. As you pay your lender from the proceeds of judgment or settlement, you must pay back the principal amount you’ve borrowed along with the interest or funding fee. And mind you, this could be doubled or tripled the amount of what you have initially borrowed from the lender.
Loan Revolves around Your Case
It isn’t uncommon for personal injury cases to conclude after months or years. The rates of interest therefore for lawsuit loan may take you between 27 to 60 percent annually. So if you take 25,000 dollars loan, the interest alone may run you for around 12,500 dollars or even more in a year. Due to the reason that the interest is compounding every month, you may likely pay the lender somewhere around 32,000 dollars if your case takes 24-months to settle.
Yes it is true that it may be expensive, but if you are looking for immediate money, this can be a real savior.
How can You Qualify for such a Loan?
Since lending companies are taking huge risks, it would not be paid back if you have lost the case or settled for less than what is expected, it’ll just lend applicants if it feels confident that you’ll win or settle the case for a huge amount.