Lawsuit cash advance loans is a steadily growing segment within the American financial industry accounting for over $100 million worth of business every year. Though this segment is just about 2 decades old, the growth has been impressive. While pitched battles are being waged by lobbyists in different states across the U.S., the growth of the segment perhaps substantiates its need for the litigants. 2013 in particular has received plenty of negative attention to lawsuit cash advance loans. However, it could be a very generalized perception that the litigants who opt for lawsuit advance are unaware of the financial consequences of their action. A primary reason that makes lawsuit advance attractive for the litigants is that they come without the usual constraints like credit check or income verification.
Why Lenders Charge More on Lawsuit Advance
The widespread complaint from the lobbyists and support groups is that the lawsuit cash advance companies charge astronomical interest rates. In practice however, this could only be partially true because if you, as a borrower/litigant choose your lawsuit advance company wisely, you have the ability to know the precise cost of the borrowing upfront. The onus of asking for and having complete knowledge of all conditions governing the lawsuit advance squarely rests on the litigant/borrower. After all, the borrower is required to sign an agreement and it is his/her duty to read the fine print and understand its contents. Borrowers should also appreciate that lawsuit advance companies are a business and they are entitled to make a profit. Also remember that in the unfortunate event of the borrower losing his lawsuit, the lawsuit advance company loses the entire advance in terms of the agreement.
Lawsuit Advance to Meet Your Routine Family Needs
You have suffered from a motor accident or workplace injury and your earnings have been compromised. Add to this, a stiff medical expense and there is a serious threat to your savings. This is the perfect situation in which a lawsuit advance comes to your aid. Raising a loan from other sources is not a cake walk because your credit scores are sagging and most lenders would not approve a loan for you. Thankfully, the lawsuit advance companies are willing to lend some money, often between $500 and $5,000 depending on the specific circumstances of your law suit without a credit check or income verification.
Using Lawsuit Advance with Diligence
Injudicious use of all forms of credit can hurt the borrower and this is true of lawsuit advance too. Even when a lender is willing to advance $10,000 should you borrow all that if your immediate need is pegged at about $1,000. The litigant/borrower is expected to take a conscious decision pegging his borrowing at least one notch below the immediate needs. This will prevent the overwhelming accusation that lawsuit advance companies are working against the interests of the litigants and that the borrowers will be left with hardly any money even on the face of a decent award by the courts. If the borrower/litigant has a clear understanding of the numbers, there is no way that a lender can twist the tale.
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About the author
Michael Smith is the Customer Experience Director at 911 Lawsuit Loans LLC and is responsible for client relations throughout the funding.