Five Downsides To A Personal Loan And Why Plaintiffs Should Consider A Lawsuit Loan Instead
The typical reasons for taking out a personal loan include automobile financing, home improvement, and other everyday financial situations. But what about the plaintiff? A person who finds themselves strained financially during a lawsuit falls under a very unique category, and personal loans may not be the the right solution. Lawsuit loans, however, are tailored to the needs of a plaintiff. A few problems that plaintiffs have with personal loans include:
1. A plaintiff can be turned down because of unemployment or a bad financial history. This results in a catch-22 for plaintiffs. They need money because due to a personal injury, wrongful termination, debt accumulated during the lawsuit, or another reason related to their case, and yet they dont qualify for a personal loan for these same reasons. Banks dont take the lawsuit into account when reviewing an applicant for a personal loan but looks at employment and financial statistics instead. A lawsuit loan company specializes in examining the lawsuit as collateral when reviewing an applicant.
2. You could lose collateral. They usually require something as used as collateralan expensive item like a car or homeand if you lose the lawsuit and cant repay the money, your collateral could get taken instead. Not only could the plaintiff lose the lawsuit, but their home or car as well.
3. Securing a personal loan can take time and effort. As previously stated, banks dont specialize in these kinds of circumstances. Banks have the luxury of waiting to approve an applicant. The problem is, a plaintiff doesnt have that luxury. Medical bills, mortgages, and other expenses cant wait around forever. Sometimes, plaintiffs even settle for a lower amount of money because they have urgent expenses and cant afford to fight for a larger settlement. SMP Advance Funding only takes 24-48 hours to review your case. Then, the money can be wired to you or through a check sent by mail. Applying for a lawsuit loan online is fast and easy.
4. Plaintiffs typically have legal fees that may make banks uneasy. When banks review an applicant for a personal loan, their financial history is considered. The enormous legal fees involved in a lawsuit can make a plaintiff look like a risky personal loan candidate. This is expected from applicants of lawsuit loans, however, lawsuit loan companies consider your case based on the strength of the lawsuit alone.
5. Banks arent as familiar with the legal process and may require loan repayment before the case is settled. The terms of a personal loan dont usually take into account the time frame of the lawsuit, especially considering settlements usually drag on into unknown time frame. Lawsuit loan companies expect repayment upon resolution of your claim.