During their lawsuit, many plaintiffs face financial strain and choose short term quick-fix options such as credit cards and payday loans to help support themselves until they reach a settlement. However, these options usually come with fees and interest that can make financial problems even worse. In many cases, lawsuit loans are the better funding option.
Plaintiffs usually have to face troubling expenses like medical bills along with their mortgage, car payments, and any other personal expenses along with the stress and frustration of fighting a lawsuit. So, what is a plaintiff to do?
Payday advances are loans secured against your future wages. Payday advance loan companies will look at payroll information and then will expect to be repaid once your next paycheck comes out along with a fee. However, this means you have to wait until your next paycheck to have a regular payday. Before taking out a payday advance, you have to be sure that you can stay afloat during this kind of financial situation. Will you be in a place where you can pay back the loan company and pay your usual expenses? Can you be sure that you’ll have a settlement by then? If these questions are difficult to answer, then this isn’t the best option.
However, some plaintiffs are in their legal situation because of a personal injury or another reason that makes them unable to work. These plaintiffs sometimes look to credit cards for a short term fix, thinking they can just repay them once they receive their lawsuit. But the longer you have outstanding credit card debt, the more interest you’ll accumulate. What happens if the lawsuit drags on for a year longer than you expected it to? This interest will be taking a huge chunk out of your lawsuit and you risk losing your belongings to repossession if you start to see too much red.
Lawsuits are unpredictable and they can take a long time to reach a settlement. When you take out that payday loan or charge major expenses to credit cards, you can’t be sure that you’ll have your settlement to repay the creditors when they expect payment. So what other options are there? There’s personal loans, but with that type of loan, you still have repayment concerns. Banks will want repayment within a certain time frame and take longer to get the funding.
The answer is a lawsuit loan. Lawsuit loans provide funding fast, like credit cards or payday loans, but without the concerns of the personal loan. Lawsuit loan companies understand how lawsuits affect plaintiffs and expect repayment after settlement. The collateral is your lawsuit, so you won’t have to worry about any belongings being repossessed. This can make the legal process and your financial situation much easier to deal with.
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 www.smpadvance.com.
