Reasons for Applying for a Pre-Settlement Loan

While you are waiting for a settlement to go through, you might have other costs that need to be met that you cannot wait for. Due to this, some people may look to take out a pre-settlement loan, that they will then repay once their settlement is finalized. 

Some issues that led to the settlement, such as any injury, may cause ongoing suffering if not dealt with immediately. As part of making peace with the incident and moving forward with their lives, some individuals may wish to resolve the problems that they have had since the circumstances occurred as quickly as possible.

Paying for Medical Bills

Depending on the injuries you received, you may have a large number of medical bills that need to be paid off sooner rather than later, which a pre-settlement loan may help with. For those who have ongoing medical problems relating to the incident, you may be wondering ‘can you get more than one pre-settlement loan?’ This can be possible, depending on the issues and other information you provide on the application. For those who do not have a financial plan, or money put aside, this can make a big difference in resolving both short and long term injury problems.

Repairing a Vehicle

For some who are waiting for their settlement, a pre-settlement loan may allow for the repairing of a vehicle that was damaged in the offending incident. This is particularly important for those who require their vehicle back up and running for school runs in the station wagon, or to get to or from a place of employment in their van – the use of a vehicle can be essential for some people. 

Some repairs can be overly expensive – more than is in a person’s saving account. Individuals may wish to use their settlement money to pay for the repairs, however, are unable to do so until they receive the money. In this scenario, a pre-settlement loan would allow for the repairs to take place.

Lost Wages

With the average salary at the beginning of 2020 falling at around $957 per week, this can be a lot of money lost over time if you cannot work due to injuries. For a family to still be able to pay their rent and bills, money from other sources may be needed. Similarly, to the above points, the claimant may be expecting to use their settlement money to fund themselves until they can return to employment. In the interim, while they wait for the settlement money to clear, a pre-settlement loan can help to ensure all bills are still paid. Stopping extra financial problems can help lift some of the burden when you cannot work. 

Applying for a pre-settlement loan will depend entirely on your situation, and the severity of your claim. Needing a loan does not mean you have failed financially. Instead, it can simply help you until you are back on your feet. 

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.