Should I take out a settlement funding loan while I’m awaiting my injury settlement?

If you’ve been injured in a Massachusetts accident and are coping with steep medical bills and the cost of property damage, there is a good chance that you and your family are feeling the financial pinch. Because it can take a while to receive your personal injury settlement, you may be contemplating ways to cover your expenses while you wait to receive your damages.

Your first thought might be to take out a personal loan from a settlement funding company to help cover the expenses while you wait on your compensation, but that should be one of your last resorts as these “loans” often come with ridiculous repayment terms that can leave you in debt for years, especially if your final injury settlement isn’t as much as you thought it could be.

Why is it taking so long for my injury settlement?

A settlement cannot be reached until medical evaluations and treatment are completed so your attorney and the insurance companies can assess the value of your injuries. These assessments will allow you and your Massachusetts personal injury to negotiate a settlement, but fair settlements are not always offered and litigation may be necessary. Litigation can be a lengthy, complicated process, which can add more wait time to your potential settlement.

Since all accidents are unique, personal injury settlements can take months or even years to settle with no real way to predict exactly how long any specific claim may take.

What is a Settlement Funding Company?

Settlement funding companies are lenders who provide loans to victims awaiting structured settlements for pending injury claims. Unfortunately, many of these companies take advantage of customers by charging unreasonably high interest rates and fees in exchange for the convenience of getting your settlement compensation “early”.

Because your settlement is not set in stone until you actually sign the agreement, no one can determine the amount ahead of time, which means if you take out a loan for more than your final settlement, you’ll end up owing money plus interest! You should weigh your options carefully. If you are unsure, speak with a Massachusetts personal injury attorney about the status of your case.

Contacting a Massachusetts Personal Injury Attorney

A personal loan, especially through a settlement funding company, should be a last resort while waiting for your settlement loan. If you feel your case is taking too long or you have a settlement offer that seems unfair, you should have your case reviewed by a Massachusetts personal injury attorney. Contact the Massachusetts Personal Injury Attorneys at Phillips & Garcia to schedule your FREE legal consultation today – 1-877-892-5620.