Should I Get a Settlement Loan?

The Personal Injury litigation process can be difficult and long.  For example, in a typical Personal Injury case in Ontario, several years can go by before the accident victim sees any compensation from his or her loss.  Often, the victim is facing difficult health issues and can not earn as much as prior to the event.   Invariably, in these circumstances, many people face financial difficulties.

If you are involved in a Personal Injury case and need financial help while waiting for a potential settlement then he first question is not whether you need a settlement loan but whether you need to borrow at all.  If you can rearrange your life so that you do not need to borrow then that is always the best solution.  For example, you may be able to reduce your expenses or you may be able to ask for help from friends and family.

If you determine that you do need to borrow then the next question is where you should get the additional required funding while you await the outcome of your personal injury case.  The answer is you should get it wherever it is cheapest.  If you own a house and can borrow against it then that is likely the cheapest source of borrowing.  You may also have other sources of relatively inexpensive borrowing available to you.  Credit cards are a mixed bag but most often they are quite expensive and should be avoided as a source of Personal Injury Funding.

If you have decided that you do need additional financial help then Settlement Loans can potentially be a good option.  We have discussed the basics of settlement loans previously here.  The key is to find the right settlement loan company.  The key question to ask is what is the interest rate to be charged.  Companies like Legalender based in Toronto, Canada use technology to offer very good rates on their loans.  You should do  your research and make sure that you are getting the best possible rate on your settlement loan  because at the end of the day the interest will come out of your legal settlement.

In summary, a Settlement Loan should be treated like any other type of borrowing.  If you need to borrow, then look for the least expensive available option and borrow only as much as you need while you await the outcome of your personal injury case.

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