Monday, August 26, 2019

Settlement Advance: How to Pay Your Bills on Time

Claims that go through the legal system can take months or even years to be paid. To avoid that, many cases are settled through a mutual agreement of the plaintiff and the defendant, which cuts short the legal proceedings to save everyone time and money. 

However, even if you have been offered a settlement that you plan to take with the help of your attorney’s advice, it may take a while for the funds to be distributed to you after related expenses and fees are paid first. 

Here are some ways that you can keep a handle on your finances and bills while waiting for the settlement you’re due.

Use a Low-Interest Credit Card

Pay your bills that are coming due on a new or existing low-interest credit card. Some banks offer zero percent interest for up to twelve or eighteen months. If your credit score is high enough, you may be eligible for one of these offers that will cover your current expenses. You can then pay off the card when your settlement money is disbursed.

Apply for Lawsuit Funding

Lawsuit funding companies often pay legal fees and claim-related expenses in advance of receiving a settlement. You just fill out an application and explain why the loan is needed, and if approved, you will receive the funds quickly to get your bills under control. Ask your attorney about using lawsuit funding if your expenses are quickly mounting.

Borrow against Your Home Equity Credit Line

If you own a home that has acquired equity in value, you may be able to use a home equity credit line for your bills. Many lenders are more willing to approve loans that are needed for specific and uncommon circumstances, like legal expenses or claim-based costs, than for regular living expenses.

Ask Relatives for a Loan

Although some people prefer not to do business with family, others feel that relatives understand their circumstances and trust them to repay any funds that are advanced for necessary expenses. This is especially true when a known legal settlement is pending. 

Agreeing on specific terms such as the amount to be repaid and the time period in which repayment will occur can help to reassure the family lenders that the money will be returned in a timely manner.

Paying your bills when they come due is important to protect your credit rating. Consider these options when borrowing money ahead of receiving a legal settlement.

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