The Pros and Cons of Getting a Loan for Lawsuit Mr. A. Johnson suffered a devastating stroke as a result of taking a pain medication called Vioxx back in 2007. He was waiting for the resolution of a class action suit against the drug’s manufacturer. But while waiting for the settlement, he received an eviction notice for the home he had been living in for more than 10 years. All his savings have been spent and he has nowhere else to turn to. He tried borrowing money from his friends and relatives but they all turned him down. Finally, he came across the idea of getting a loan for lawsuit and after approaching a lender, he was able to get a cash advance of $9,500 which allowed him to keep his home. If you are a plaintiff in a personal injury case, then like Mr. Johnson, you’re probably having financial problems right now. Cases like these could take years before you are awarded compensation and in the mean time, you still have bills to pay. You’re unable to work because of the disability caused by the personal injury and yet your bills continue to pile up. You still have to put food on the table and roof above your head, but you are not earning any income. What are you supposed to do? Well, you can consider getting a loan for lawsuit. It’s not for everyone but if you have no other alternative, then you should consider this option to save yourself from a lot of financial troubles. The Pros of Getting a Loan for Lawsuit Perhaps the main advantage of getting this type of loan or cash advance is that, as long as your case is solid with a high probability of getting valuable settlement, your application will likely get approved. Your credit score, employment status and the assets that you have will have no bearing on your application. Secondly, with this kind of finance, there’s no risk to you, the borrower. You see, if the results of your lawsuit is against you (meaning, you lost), you won’t have to pay the lender. If the settlement awarded to you is lower than expected, you also don’t need to pay more than the settlement amount. Essentially, you will only pay back what you owe if you win or receive a settlement. The Cons of a Lawsuit Loan One thing that may discourage people from getting a loan for lawsuit is the fact that the interest rate is rather high. But this is understandable considering the risk that the lender takes every time they grant you this kind of cash advance. This industry is unregulated in most US states so you need to be very careful when in the process of choosing your lender. Many of them advertise extremely low interest rates but they fail to inform you that the rates are compounded so you’re still in fact paying sky high fees. Find a lender who is honest and trustworthy so you can avoid paying exorbitant rates.
Source: - http://www.lawsuitloansfundings.net/pros-cons-getting-loan-lawsuit/