How to get money while waiting for an injury settlement
If you’ve suffered a slip and fall injury or have been in a motor vehicle accident, the day you’ll reach a settlement can seem a long way off. It can be a significant challenge to get by financially while you wait for everything to be resolved.
Even if you’ve hired a very capable personal injury lawyer, reaching a settlement takes time. Even though the vast majority of personal injury cases are resolved without going to trial, it can take two or more years after the accident to reach a settlement. In the meantime, you have all kinds of additional expenses, and your earning capacity might be restricted by your injuries.
To make ends meet while their personal injury case is being resolved, some people consider getting a loan from a ‘settlement lender’.” Settlement lenders loan money to people waiting for their personal injury cases to be resolved. Essentially, a client borrows against their settlement. No payments on these personal injury settlement loans are required until your case is settled.
Settlement loans are not for everyone. For one thing, they are not cheap. Interest rates tend to be above 25 per cent. This means a settlement loan should probably not be your first option.
Consider whether you really need the settlement loan. Is it possible to cut back on expenses and tough it out until you reach a settlement? If not, are there other ways to access funds?
Companies that specialize in personal injury loans are not hard to find. How do you choose one? Ideally, you would know someone who has previously dealt with a particular company. Failing that, ask your lawyer if he or she is aware of a reputable company – most injury lawyers will have dealt with them over the years, and will be able to give you some names.
While a personal injury loan is not for everyone, it is one option to consider if you’re having difficulty making ends meet while waiting for your personal injury claim to be resolved.
Frequently asked questions
Can I get more than one pre-settlement loan?
You may be able to receive several loans against the same future settlement; however, the amount you can borrow will depend on the loan company you are dealing with.