You may know someone who is going through a personal injury case.
You could be the one facing your own personal injury case.
Going through a court trial is not an easy experience. You would need to endure trial stress and you still have to take care of your basic needs and medical expenses.
What options do you have so you can tide over while waiting to receive your fair compensation? Lawsuit loans is a way that you can take care of your expenses and other needs related to your case.
You might know lawsuit loans by other names like:
- pre settlement lawsuit loans
- lawsuit cash advance
- lawsuit funding
- settlement loans
- pre settlement funding
No matter how you call it, they all follow the same principle for plaintiffs. Applying for legal loans in lending companies needs you to have an active lawsuit first.
Companies would look into your case to see how much you can get once you win or settle. They will give you a cash advance once they approve. Companies like https://www.deltalawsuitloans.com provides cash while you wait for your case to settle and one good thing about them is if you do not win your case you do not have to pay them back. If interested to avail of their services you can call them at 786- 741-8003.
Once your case is over, you will have to pay the principal amount and a funding fee.
Are Lawsuit Loans Worth The Risk?
One good appeal that lawsuit funding has is that if you don’t win your case, you would not have to pay anything back.
Lending companies put more risk on their end because they will not get anything back.
That’s why good lawsuit loan companies sift through loan applications. They approve only those they think will win based on pre-trial settlements.
Imagine how much these lenders lose when their clients’ cases do not win.
What Impacts Your Lawsuit Loans?
The costs for pre settlement lawsuit loans depend on the lending company that you choose.
If you are applying at different lending companies, check the type of interest of their loans. You should also note the percentage rate of their interest. Go for the ones that offer the most reasonable rates.
The duration of your case will also affect the final cost of your loan. There is no way to predict how long your personal injury case will be.
Other plaintiffs settle for less because they need the settlement money immediately. If you would like to fight for the right compensation, your case might take a while.
In some reported cases, the amount that plaintiffs would have to pay back has increased to 200%. The plaintiffs ended up getting little or no money for themselves. This is due to the fact that lawsuit loans have no law regulating the interest rates lenders can impose.
Loan Costs: Interest Costs
The faster the resolution of your case, the smaller interest you would have to pay back to your lender. If you are unsure about how long your case will be, you can foresee future costs by taking interest into account.
Make sure if the company has compounding interest and the frequency of compounding.
Compounding can be daily, weekly, monthly, quarterly or yearly. It means that you will gain interest with compounding interest. It would be a better option if the company uses simple interest.
Let’s say you get a cash advance of $10, 000. The lending company charges a monthly compounding interest of 3%. If your case goes on for six months, your loan would become $11,941. This is because they charge you on the principal amount plus added interest. If your case reaches two years before resolution, you’ll end up owing $20,328. If there is only simple interest, you will pay a uniform rate. With a principal amount of $10,000, you would only need to pay $11, 800 after six months.
Be Smart About Lawsuit Loans
Research well before signing anything with lending companies. It would also help if you have your attorney with you as you review terms and conditions. Read everything in your contract so you can catch all possible fees that the lender will charge you.
Look out for fees like application fees, processing fees and others. Check that interest charged on these fees are minimal. Since no one can control how long your case would take, it would help you be aware of how you will be charged in the end.