If you are having trouble making ends meet while your personal injury claim drags out, you’re looking at your financing options. Today, we look at the risks involved in a cash advance. Then we will look at how pre-settlement legal funding is a safer option.
In This Article
Credit Card Cash Advances
The credit card companies want to keep you in debt. That’s how they make their money. High compound interest rates mean it can take years to pay off a purchase, let alone a cash advance. That’s especially true if you are only able to make minimum payments.
Let’s take a look at the risks involved in a cash advance:
Risk #1 is that getting a credit card cash advance is far too easy and convenient, even if your credit is not so hot. Your credit card company gives you a PID number that lets you use your credit card just like a bank ATM card. You can withdraw funds at any time.
Your credit card company may also try to tempt you by sending you blank cash advance checks you can use to pay bills or buy something. If you’re not careful, the convenience can result in you racking up a lot of debt in a short period of time.
Risk #2 is steep fees and high interest (higher than your regular purchase interest rate). You will pay a flat fee or a percentage of your cash advance each time you access funds this way. It depends on the terms of your account.
Risk #3 is that you will not have a grace period on paying interest. Your card company will start charging compound interest on a cash advance right away – the same day you take the advance in fact. This is in contrast to the 30-day grace period you get with everyday purchases.
Risk #4 is that you go deeper and deeper into debt and may reach a point where you can’t make payments. For some people, this can result in losing their homes or declaring bankruptcy.
To apply for free, call (877) 735-0016
What Are Lawsuit Loans?
Instead of putting yourself at risk by obtaining cash advances while you wait for your settlement funds to come in, instead, consider reaching out to High Rise Financial for a lawsuit alone. Our lawsuit loans are non-recourse. When you are having trouble covering your expenses and the light at the end of the tunnel with your civil claim is taking longer than you previously thought, a lawsuit loan could be the best option for you.
We could provide you with a portion of your settlement in advance so you can get your family back on track financially. Then, if your attorney wins your case, you can repay your lawsuit loan with your settlement funds. In this way, you are simply accessing the compensation that is already yours.
Since our lawsuit loans are non-recourse, they pose little risk to those dealing with insurance and civil claims. Your settlement funds are the only way you can pay back your lawsuit loan with High Rise Financial. You will never face wage garnishment, debt collection, or other collection attempts.
How to Qualify for Legal Funding
You may have concerns that you will not be eligible for legal funding if you are currently out of work or have a less than ideal credit score. However, to qualify for pre-settlement funding, you simply need to be represented by an attorney and have a pending settlement.
This makes lawsuit loans considerably different from traditional loans obtained through financial institutions. These types of loans have higher interest rates and are dependent on the applicant having a high credit score. Unfortunately, once this interest starts accruing, the amount you owe the financial institution can become considerably greater than the amount of the initial loan.
With our non-recourse lawsuit loans, there is no compound interest or accrued interest over time. With legal funding, you do not need to turn to cash advances, grace periods, personal loans, increased credit limits, or short-term loans that come with exorbitant fees.
How Much Should You Hope to Be Approved for?
It is difficult to say how much your pre-settlement funding could be worth. Your loan specialist with High Rise Financial will need to closely examine your anticipated civil settlement or insurance settlement to determine how much to authorize in your lawsuit loan.
In a civil claim or insurance settlement, you could be compensated for a variety of damages. For example, in a civil claim, you have the right to be compensated for each and every loss you suffered. For example, some of the different types of economic damages and non-economic damages you could be awarded compensation for include:
- Reputational damages
- Emotional distress
- Loss of consortium
- Physical pain and suffering
- Mental health counseling fees
- Other medical expenses and equipment costs
- Household maintenance fees
- Child care expenses
- Skin scarring
- Diminished quality of life
- Property damages
However, if you are waiting on an insurance settlement, your case could be handled a little differently. Insurance settlements are based upon the amount and type of coverage purchased by the policyholder.
What if the Coverage doesn’t Fully Cover You?
If the policyholder purchased coverage that does not adequately meet your needs, there may be remaining damages even after your insurance settlement. Some of the more common types of damages that may be covered by the insurance company include:
- Property damages
- Medical expenses
- Lost wages (rarely)
You should always be prepared to pursue a civil lawsuit in addition to an insurance settlement if you hope to get the most out of your clan. Your loan specialist will need to work with your attorney to determine how much you are anticipating from your civil settlement or insurance claim payout. In a best-case scenario, we may be able to award you as much as 20% of your settlement amount.
However, keep in mind that the specific circumstances of your case could have a significant impact on how much we can approve your lawsuit loan for. Find out how much your pre-settlement funding is worth today by contacting High Rise Financial.
How Long It Will Take to Access Your Funds
One of the best parts about legal funding is the accessibility. If we can review your application and process your claim in as few as 24 hours, we will. That’s right, your bank account could have legal funding in a matter of hours if you fill out your application today.
Once you have access to your pre-settlement funds, you can take your first steps toward financial freedom and begin rebuilding your life after everything you have been through.
What Can You Spend Your Pre-Settlement Funds On?
Other types of recourse lawsuit lenders may restrict what you can spend your legal funding on or monitor your transactions. However, High Rise Financial believes in a client-focused approach. This money is yours. We are simply helping you access it in advance.
This means your money can be said however you like. You can use it to buy groceries, pay your bills, go to the movies, fill up your gas tank, bring your family out to dinner, or do whatever else you might spend your money on.
Pre-Settlement Legal Funding vs. Cash Advances
While sometimes referred to as a lawsuit cash advance, pre-settlement legal funding is different from a true cash advance. While our process is fast and easy, like getting a cash advance, that’s about the only similarity. There are several benefits associated with legal funding that you don’t get with a cash advance.
When you apply for legal funding, we do not consider your creditworthiness. Your approval for funding and the amount you can receive depends solely on the strength of your personal injury case and the severity of your injuries. This means no credit check and no up-front fees.
Benefit #2 is NO INTEREST. We do not charge interest on your pre-settlement legal funding amount. We do charge a one-time flat-rate fee.
This means the amount of money you have to pay back will be the same no matter how long it takes for your case to settle. We don’t make money on interest and fees, and we don’t want to see you further in debt.
Benefit #3 has to do with how you repay us. You won’t have any monthly payments like you would with a cash advance. You don’t pay anything until you win your case.
At that time, your lawyer will disburse funds to High Rise Financial to cover the agreed-upon amount.
The biggest benefit that pre-settlement legal funding has over a cash advance is that if you lose your case, you do not have to pay us back. Really! So, no worries about losing your home or declaring bankruptcy because you can’t pay us back.
We mentioned the speed of our legal funding process earlier. In many cases, once you fill out the application form, the turnaround time to approval is about an hour. As long as you have an active personal injury case and you’re working with a lawyer, you are eligible to apply.
Once you are approved and you and your lawyer sign the financial agreement, we can transfer the funds to your account within 24-48 hours. The money is then yours to spend as you need to, with no interest and no monthly payments.
Apply for No-Risk Pre-Settlement Legal Funding
To apply for no-risk pre-settlement funding, just fill out the form on the Apply Now page. One of our team members will reach out to you and your lawyer quickly to get the additional information we need about your case. If you have any questions, start an online chat, or call us.