You’ve probably seen a lot of companies offering you lawsuit settlement loans and if you are waiting for a settlement to finish so that you can get the cash, these ads might grab your attention. After all, if your rights or your physical well-being have been damaged, you need to get the money you deserve.
However, getting lawsuit settlement loans is not something you should easily get into. You need to learn as much as possible about them and ask the right questions both yourself and the agency offering you loans.
Here is what you should ask.
How Much Longer Will the Settlement Last?
The more time it takes you to pay back the loan, the higher the interest will be and the more money you will have to pay back. This is why you need to ask yourself how long will the process actually last and whether getting the loan is worth it.
Is There Any Other Way to Take Care of the Bills?
Is there another, simpler way that you can pay the bills without getting the loan? Think about your relatives or friends that you could ask for a loan or think about selling something that you don’t really need. These are much better options than getting the loan, but if you don’t have them, then go with the loan.
Are There Any Application Fees?
A lot of companies don’t charge application fees, but if the certain company you are talking with does, see if this fee could be waived to avoid additional costs.
Do They Have a Cap?
If you are uncertain about how long the settlement will last, finding a company that offers a cap is a good idea. A cap means that fees and interest are limited to a certain number, meaning that even if the settlement becomes extensively long, there will be no additional costs on your part.
Ask About Their Interests
The interest is where loan companies make their money, so make sure that you go through their services thoroughly. For example, a lot of companies will offer amazing interest rates at 3% but they often compound it and this leads to the final amount being enormous.
Ask If You Can Bring Your Attorney
Having an attorney by your side while talking to a lending company is a smart idea. He or she could give you valuable input and help you negotiate better loan terms. Make sure to ask the company whether you can bring your representative with you – if they don’t like the idea, avoid working with them.