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Pros and Cons of Lawsuit Loans

January 23, 2021

The financial situation of anyone who’s been involved in a personal injury can vary. For some, the costs of getting medical care or missing out on their paychecks can put them in a tight spot. 

Fortunately, for those with active, pending personal injury litigation, a lawsuit loan could be the answer. Whether to pay your mortgage, rent, or grocery bills a lawsuit loan can put cash in your pocket now, when you need it most. 

Getting a lawsuit loan may not be right for everyone, so it’s important to take time to consider your options. Read on to learn about the pros and cons of lawsuit loans. 

Potential Downsides of a Lawsuit Loan

Lawsuit loans are a financial tool that, if used correctly and responsibly, can allow you to fortify your financial situation while you wait for the results of your pending lawsuit. 

Not all lawsuit loan companies are the same, however. Although some opt for simple, transparent fee structures and fair interest rates, others might not do the same. 

For that reason, one of the potential cons of a lawsuit loan is getting stuck with a large amount of interest on your loan. Fortunately, working with your lawyer and a transparent lawsuit loan company can help you safeguard your financial interests

Lawsuit Loan Advantages 

On the flip side, the benefits of going with a lawsuit loan can be numerous for those who are able to work out an agreement with a reputable lender. When comparing the benefits of a lawsuit loan to those of a traditional loan especially, there are numerous advantages. Some of these are:

  • Non-Recourse Structure – Although traditional loans may rely on collateral for approval, lawsuit loans are non-recourse, meaning you can’t be held liable for paying your loan if you don’t get the settlement or jury award you were expecting. 
  • Much Faster than Lawsuit Process –  It can take months or even years for your settlement award or lawsuit proceedings to be finalized. This means many get stuck in difficult situations in the meantime. Fortunately, a lawsuit loan is much faster than waiting for your settlement money. 
  • Use the Money However You Want – Whether you need cash to pay off credit card debt, pay your mortgage, or rent, you can use the money from your lawsuit loan however you see fit. 

Applying for a Lawsuit Loan

The most important factor for getting approved for a lawsuit loan is the strength of your case—so don’t worry about the impact of your credit score. Simply work with your attorney to submit the application, and you could receive your lawsuit loan funds in a matter of hours. 

Contact a Lawsuit Loan Company Today

When it comes to your financial situation, don’t let a lawsuit get in the way of providing for yourself and your loved one. Money First Lending is a leader in the field because of our transparency and genuine desire to help—you can trust us with your lawsuit loan needs. 

Call 702-623-3333 or fill out the form below to get started today.