Waiting for a court case to reach a settlement and for the money you’ve won to come can take weeks or even months. The waiting period can seem especially long if you have bills and other expenses that need to be paid. Simultaneously, you may no longer have an income that can pay your expenses if you are required to attend court often or you’ve been injured and unable to work. An available option that one can consider is getting a settlement loan.
Settlement loans can provide you with the funds you need to cover your expenses until you eventually receive your settlement.
The way settlement loans work is quite simple. Unlike standard loans where you have to provide physical collateral to guarantee a lender that the loan will be repaid, settlement loans use the estimation of your legal settlement as the only necessary collateral. This means the lender doesn’t have to determine the value of your collateral before they can process your loan since the value of your settlement is typically obvious up front. As an additional benefit, most lenders who offer settlement loans will state in advance that they will only collect repayment if you win your case. If your case is lost and you don’t receive your settlement, you won’t be required to repay the settlement loan.
In addition to helping you to cover the day-to-day expenses that can accrue when waiting for your settlement to be finalized and paid, settlement loans can also be very useful if you are receiving your money in a number of smaller, structured settlement payments. Rather than receiving your money in incremental payments, you can receive it all at once in advance with a settlement loan. When your structured settlement payments begin to be dispersed, they can then be used to repay the loan.
If you’re looking for settlement loans to help you cover medical costs, bills, and any other expenses you may have, shop around to find the most reasonable interest rates and best lender for you. Your attorney will also likely be able to recommend specific, reputable lenders that past clients in situations similar to yours have been happy with.