Since the Great Recession hit, many Americans have felt the impact to their credit scores. In the proceeding years, we have all tried to borrow and spend less and live within our means. But according to a recent study by CardHub.com, Q2 2011 Credit Card Debt Study, U.S. consumers have accumulated a devastating $18.4 billion in credit card debt in the second quarter, which is 66% more debt collected from the same quarter exactly a year ago. Debt can be increased ten fold when a family is in the middle of a pending claim or lawsuit due to a work or personal injury that has occurred.
Credit card scores were hurt during the recession by consumers that exceeded credit limits, missed payments, or fell into financial debt through foreclosure or bankruptcy. But looking under the surface of these transgressions, it is clear that there are other factors at play. For instance, average Americans can find themselves in financial turmoil if they’ve experienced an accident that has caused them to miss work or lose their jobs altogether. A few missed payments or escalating medical bills later, and a family that was trying to spend responsibly will discover that their credit is ruined. Once your credit is ruined, even the most basic costs of renting an apartment or applying for insurance will become exorbitant.
For families in this situation, a lawsuit loan might provide the financial relief they need to protect their credit. Lawsuits for personal injury or workers’ compensation cases can be delayed or stagnate completely as insurance companies try to wait out the patience and financial means of a plaintiff. It makes sense: when a plaintiff sees their debt mounting with each credit card payment, they’ll settle quickly just to begin damage control on their lives.
Plaintiffs need the strategic means to wait for a fair settlement. With the help of a loan provider, a plaintiff can receive legal funding within as little as 24 hours. And, for many lawsuit loan providers, personal injury and workers’ compensation are only a portion of the cases that they are willing to provide loans on. Especially in cases where the plaintiff has sustained severe injuries or wrongful death, the lack of stable income makes a lawsuit loan an incredibly beneficial option to avoid financial debt. The best solution is to work with your attorney and a lawsuit loan provider, so that together you can determine how to pay down your debt with a lawsuit loan. A lawsuit loan might not pay down pre-existing debt, but it will surely get plaintiffs and their families off in the right direction towards protecting their credit after a destabilizing injury or accident.
About the Author: Steven Medvin is the Executive Director of SMP Advance Funding, LLC, which provides lawsuit funding to individuals who need a lawsuit loan for pending lawsuits. For more information please visit: https://www.smpadvance.com.
