You are just so unfortunate to have been involved in a car crash, and your funds seem to have all dried out. The accident left a trail of destruction, restricting your mobility and ability to earn, and you are now beginning to get worried about your life and those of your loved ones, now that the financial wheels of life seem to be coming to a slow, but sure stop on you. A call to your lawyer confirms to you that indeed you have a watertight case and you are probably going to receive thousands of dollars in settlement.
However, the problem is that you still have medical issues to deal with and before the settlement, there is a bruising battle with the defense attorneys, and no one knows for certain when the settlement may be made. It could take months or years, but your bills and other financial obligations to yourself and your family aren’t going to wait that long. Your only option then is to consider pre-settlement funding. But would auto settlement loans be the right solution in your case?
Before you can commit to going for these kinds of legal funding, you should make a careful analysis and be convinced beyond any reasonable doubt that they make the best economic sense at that particular moment up to the time the settlement is made. Truth be told, these loans don’t come cheap and unless you can ascertain that you need the emergency cash, you should never feel so strongly about them.
So then, how do you know if you should or shouldn’t go for these loans and what are their merits? The only time you should consider going for the loans is when the bills are piling up really fast, and you can no longer wait for your case to be settled because you simply can’t tell when that will be happening.
Table of Contents
Here are some of the other possible scenarios when the loans become a most viable option:
You are seriously injured and you have lost the ability to work
If the accident didn’t leave you with any serious injuries, and you can still manage to work and generate some income, then an auto accident settlement loan should never cross your mind. You should know that getting the cash advance is never free because once your case is settled, you will have to pay not just the amount of money that you were loaned, but a percentage of the total settlement. Sometimes it can be so huge that after the loan is paid, you remain with nothing or very little money.
A car accident settlement loan should be considered when all hope is lost and it remains the only option for your financial survival. If you are still in a position to afford food money, gas money, rent, and money for other vital utilities, then you will be better off waiting until your case is settled for extra finances.
However, in instances where you sustained serious injuries and you are not in a position to support your family, then going for these loans would be the most ideal thing. As mentioned, such lawsuits may take a long time to settle, but life must go and you have to pay your bills.
When insurance companies are lowballing the value of your case
When the insurance companies are dealing with your case, their main goal is always one: to give you as little money as they possibly can. And to demonstrate this, they usually employ a pool of highly competent lawyers which if you have a weak personal attorney, will tear into your evidence and try even to avoid giving any money at all.
Additionally, it is their habit to find legal loopholes and useful tips and tricks that will swing the case in their favor. But, if you and your attorney have the knuckle to sit on the case for long, then the adjuster will know that you are in it for the long haul.
Accidents lawsuits are always a game of patience. If you are willing to wait for a long time, then you are increasing your chances of getting a better settlement. However, during all this time, and when the insurance is also lowballing the value of your case, your life should not stop.
You need to have the means to continue supporting yourself and your family as you allow your attorney time to fight for your case. During such times, pre-settlement funding is always a good idea because they will give you some financial reprieve as you wait for the settlement.
You don’t have any other source of funds before the case is settled
The other instant when you may consider a pre-settlement funding is when you have exhausted all your financial resources before the case can be settled. You are probably at home with no other source of income and perhaps you have exhausted all your savings.
Your loved ones may also not be in a position since they have been supporting you ever since you got the accident and the banks, for one reason or another, are also not willing to swing any funds your way. The only option you will be left with, therefore, is to consider legal funding and make the repayment once the settlement is done.
Getting car accident settlement loans is easy and risk-free
There is a lot of red tapes when you are trying to get the other types of loans. You will have to make an application, which will be followed by a strict qualification process that entails a look at your credit score, earning capabilities and your ability to comply with the repayment schedule.
Additionally, it may be days or weeks before you are approved for the funds, but there are no guarantees that you will be approved. This is never the case with accident settlement loans. The lender will simply look at the merits of your case and make a determination if they think you have good chances of getting a settlement. If they are comfortable with it, then the funds will be released as soon as possible, with no costs or risks, whatsoever.