Questions To Ask Before Getting A Settlement Loan

Anyone that has filed a personal injury claim must meet a long list of financial obligations. That claimant needs to cover the expenses that have arisen, as a result of the claimant’s treatment and recovery. Those expenses represent the cost of medicine, transportation, therapists and help with housekeeping or lawn care.

Still, no accident can make money while undergoing a treatment program. For that reason, some victims find it hard to make ends meet, while striving to recover. This article offers an overview of one possible solution to that specific problem.

Would a settlement loan help?

A settlement loan provides an accident victim with a way to take out a loan, while using the money from the injury settlement as collateral. In other words, the claimant borrows against the expected award money. Of course, as is true with all loans, the lender that has promised a settlement loan expects to get interest, along with the payback of the borrowed funds. The loan’s features highlight the questions that should be asked by anyone has filed a personal injury claim.

The interest rate is quite high. It could be as high as 25%. Hence, someone that has filed an injury claim should ask this: Can I handle the payments on a loan with such a high interest rate?

The interest would be an added expense. Is there some way that I could cover my existing expenses without taking out a loan?

Are there other funds available? Can someone else bring in the income that the injured party used to bring home?

If the answers to those questions make it obvious that borrowed money would be the best solution then this is the next question: How to select a suitable lender?

• Speak with any friends or relatives that have taken out a settlement loan in the past.
• Speak with a personal injury lawyer in Camrose and find out if that professional has any suggestions.
• Go online and study any website that summarizes the services of a lending company. Are there any testimonies from previous clients on that same website?
• Prepare a list of questions to ask a potential lender.

Perhaps the effort to find a lender will aid discovery of information that throws more light on loans offered to those with personal injury claims. That added information might make the same loans seem like a good solution. Alternatively, it could make utilization of such loans appear rather foolish.

In either case, the claimant that is hard-pressed to cover his or her expenses will acquire helpful details, regarding how to live, while awaiting an expected compensation. Consequently, the task of deciding whether or not to take out a settlement loan should become a bit easier to handle.