How Pre-Settlement Funding Can Help You Get Your Finances in Order
When you’re in the middle of a legal dispute, it can put a strain on your finances. Legal proceedings can be expensive and often take a long time to resolve, meaning that you may be left struggling to pay your bills and cover daily living costs.
Pre-settlement funding may be the solution to your financial struggles. Pre-settlement funding is a type of loan that you can take out to help with your financial needs before the resolution of your legal dispute. Pre-settlement funds are usually quite easy to access and can provide the financial help you need to get back on your feet.
To understand how pre-settlement funding can help you get your finances in order, it’s important to first understand how these type of loans work. Pre-settlement funds are provided by a third-party lender, usually an outside company or investor. The lender will advance you a portion of the expected amount you may receive as a result of settling the legal dispute. The pre-settlement loan amount is based on the expected settlement amount and your capability to repay the loan. For example, if the expected settlement amount is $75,000 and you’re approved for pre-settlement funding of $25,000, you may be asked to repay $30,000 if you do end up settling the legal dispute. The third-party lender will take the risk of not receiving any repayment if you lose the legal dispute, which makes pre-settlement funding a low-risk option for both you and the lender.
As previously mentioned, one of the benefits of pre-settlement funding is that it can help you get your finances back in order. Since pre-settlement loans offer flexible repayment plans, you can use the money to keep up with daily expenses such as payments on utilities, rent and groceries. Pre-settlement loans can also be used to pay for other costs associated with your legal dispute, such as attorney fees or court costs. This means that you can be more financially comfortable while your legal dispute is being resolved, rather than worrying about how you’ll make ends meet in the meantime.
Pre-settlement funding also allows you to save for future expenses, rather than relying on credit cards or other high-interest debt. When you get pre-settlement funds, you don’t pay interest on the loan until you’ve settled the legal dispute. This means you can use the money to cover living expenses while saving the rest to cover other expenses in the future. This can help you get back on track financially and start building up a nest egg while your legal dispute is resolved.
Finally, pre-settlement funding can also help reduce the pressure you may feel while dealing with a legal dispute. Many people find themselves feeling stressed and anxious when they’re dealing with a legal dispute, but pre-settlement funds can help ease that stress. Since you know you have the funds available to help you make ends meet, you don’t have to worry about finances as much, allowing you to focus more on the settlement process.
Overall, pre-settlement funding can be a great way to get your finances in order before a legal dispute is resolved. With the help of pre-settlement funding, you can manage your finances more efficiently, save for the future and reduce your stress throughout the process.
