If you’re 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’ll look at how pre-settlement legal funding is a safer option.
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’ll 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 won’t 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 home or declaring bankruptcy.
For a free legal consultation, call (877) 735-0016
Pre-Settlement Legal Funding
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 don’t 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’re 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 at (866) 407-6404.