There will be many situations in life where you will have a lot of bills to pay but for some reason, you won’t be able to do that. May the reason be insolvency, injury, or any bad news in the family, etc. There can be many reasons to not be able to pay, but these reasons are not accepted by people who lent you money. They want their money back no matter what, otherwise you can be in a big lawsuit or can lead to the services being cut from your house if you haven’t paid your bills on time. There are many ways by which you can solve these problems, but for a lot of people advanced settlement funding is the move.
What is advanced settlement funding?
It is basically a lump sum money which you take from a financing company that you can use in order to pay for your household bills or maybe your medical cost. But before funding the money to you, the finance company examine your situation and case properly, and will also require paperwork from your attorney. If the company thinks that you have the capability to win the judgment in the case, then you will be granted money. This is an advanced settlement.
Why you shouldn’t consider advanced settlement funding
But have you ever imagines how much more can you suffer if you take this money, even though you can pay your bills and other costs, you can possibly have these adverse effects:
- High-interest rates – Usually these types of loans have high-interest rates, leading to more and more expensive.
- Interests can accrue – the interests can accrue until your case is resolved. In many cases, if the case takes a long time, your interest may hike up and even exceed the principle of the loan.
- Adds pressure to the injured victim – the repayment of these types of loans depends on how much time it takes to resolve the case. The more time it takes, the more interest victim pays. There are some cases where the injured victims close the case prematurely due to the increasing interest incurring on the advanced settlement funding.
Therefore, these are enough reasons to tell whether you should go for advanced settlement funding or not. It may be good till you pay all your bills, but after that, it can be a real pain for the victim to repay back the loan. Even though many people say that advanced settlement funds are good, but honestly, they are not.