Reasons To Talk To A Lawyer Before Agreeing To An Accident Loan
If you’ve been injured in a Maryland car accident, you know that the aftermath can be overwhelming. Part of this is because medical bills, lost wages, and ongoing expenses create financial strain while you wait for your settlement. To bridge the gap, some individuals turn to accident loans, also known as lawsuit loans or legal funding.
While these loans may seem like a fast way out of a bad situation, they come with risks that require careful consideration. Speaking with a Baltimore personal injury lawyer before agreeing to an accident loan is key to protecting yourself.
The Appeal and Risks of Lawsuit Loans
A form of cash advance provided to plaintiffs in personal injury cases, accident loans are secured against your anticipated settlement or court award. Unlike traditional loans, accident loans don’t require repayment unless you win your case. The structure of the loans appeal to many accident victims struggling to cover immediate expenses while waiting for their case to resolve.
For many, the idea of an accident loan can seem like the solution to mounting financial pressures. After all, treatment for injuries can be expensive, especially if insurance coverage is limited. Or lost wages due to injury may leave you unable to meet basic living expenses.
While the immediate relief may sound tempting, accident loans often come with significant drawbacks.
- High interest rates. Notoriously high, interest rates on accident loans often exceed 30%. This can eat into your settlement and leave you with less compensation than expected.
- Lack of regulation. Accident loans are not as tightly regulated as traditional loans, which means fewer protections for borrowers.
- Settlement delays. In some cases, lenders may exert pressure to prolong the settlement process to maximize their return, adding further stress to your situation.
Before agreeing to an accident loan, have a conversation with a legal expert. A seasoned car accident attorney may be able to push for a faster resolution to your case, potentially eliminating the need for an accident loan.
If you are in a situation where resolution to your case is still in the distance, your attorney can review the terms of a settlement loan before you sign on the dotted line. Then, you will fully understand how the loan could impact your anticipated financial relief. Additionally, lawyers know how to work with medical providers and creditors to delay payments until your settlement is finalized, which could relieve you from immediate financial strain, reducing borrowing needs.
Talk to a Legal Pro to Protect Your Financial Future
The reality is while accident loans can seem like a quick fix, the long-term consequences can be costly. By consulting a Baltimore personal injury lawyer, you’ll gain clarity on your financial options and avoid potential pitfalls.
Could you stabilize your finances without a pre-settlement loan? Don’t make choices that could jeopardize your car accident injury settlement. Contact the knowledgeable attorneys at Iamele & Iamele, LLP to explore all avenues for securing the compensation you deserve. Doing so can help you to avoid unnecessary debt. Contact us to book a confidential appointment.
