Are Lawsuit Loans Worth it? The Pros and Cons

Injuries happen, sometimes at the worst times in our life. From medical bills to possible unemployment and other emergencies due to your injury, the bills can stack up fast. This is amplified if you're dealing with a lawsuit on top of everything else. Lawyers are expensive; court fees are expensive – everything suddenly seems to cost too much.

This is where a lawsuit loan comes into play. These are loans, or cash advances, that you can take out after signing away the money you'll be rewarded after your case is settled. You'll get the money you need while your case sits, waiting to be resolved, but you'll have to pay back the company from the settlement agreed upon after you win your case.

Deciding if taking out a lawsuit loan is something that should be seriously considered and heavily deliberated on. Knowing the benefits, and the disadvantages, of doing so are important to keep in mind when making the decision. Looking at the facts can help you decide if this route is the best option for you.

Pros

• Like with any sort of cash advancement or loan, you'll get immediate benefits, with the setbacks being more long-term. A few things you can expect to gain when applying for a lawsuit loan and getting approved:

• Immediate cash and reassurance of your stability. With the added stress of an injury, having that financial back-up can help take the strain off of things.

• In the case of a sports injury loan, you can help target manufacturers that contribute to the safety problem on the field, such as helmets or gear that aren't of good quality.

You'll buy yourself some time. Many people will accept the first settlement offered, even if it isn't the best one for them, just because they're working on a tight time clock.

Cons

Debt is a scary thing, and though lawsuit loans are different from typical loans, they still propose some serious downsides to consider and prepare for if you make the decision to apply. Some of the biggest issues you should start to think and prepare for:

• It can get expensive. They will charge interest, and since court cases, especially those with a personal injury, take a while to settle, that interest could rack up fast.

• You may not even quality. Some cases aren't even able to get approved for the loan, so counting on that isn't a good idea until you're sure you'll get approved. Always have a backup plan.

• Lawsuit loans are still a fairly new thing to be introduced to the public. Finding a reliable company will be difficult, and it won't be regulated as well as typical loans are by the government. You may be giving up some security if you're approved, so be careful and do your research before making a decision.