New Lawsuit Settlement Loan Article Published

I just published a new article on www.ezinearticles.com.  Feel free to go check it out!  Here’s a snippet and a link to the article:

Lawsuit settlement loans are an obscure financial option for most people. Because most of us aren’t involved in lawsuits on a regular basis, we don’t often have to decide if getting a lawsuit settlement loan is the right thing to do or not. The truth is, in my years of helping people make this decision, all of their confusion boils down to a few unanswered questions:

What is a lawsuit settlement loan?

A lawsuit settlement loan is a “non-recourse loan”. “Non-recourse” simply means that the lender doesn’t have the right to collect the money if the case doesn’t settle-for example, if you got a $10,000 lawsuit settlement loan and you lost your case, you wouldn’t owe anything. This is the way a lawsuit settlement loan has to work under Federal law.

How high are the interest rates on lawsuit settlement loans?

The interest rates on these loans range anywhere between 1% to 5% monthly. A fair interest rate for a personal injury lawsuit settlement would be around 2.5% to 3.5%. A fair interest rate for a structured settlement case would be around 1% to 1.5%. For riskier cases, expect interest rates bordering on 5%. Be careful of deceptive math with most companies! Some companies may try to scam you by making you believe a “grid-structure repayment plan” is the way to go. With these repayment plans, you may end up repaying 60% interest if your case settles any time within six months. So, if your lawsuit settlement arrived after two months you would have ended up paying 30% of the loan per month.

What if I lose my case?

Because lawsuit settlement loans are non-recourse loans disbursed based on your pending settlement, if yours never comes because you lost your case, then you wouldn’t owe anything.

What if the settlement is less than the loan amount?

If the settlement is less than the loan amount, you still do not owe more than the settlement. Basically, you will not leave the deal with personal debt from the non-recourse loan. . . (READ MORE)

– Jason Argall