What should you do when you run into a financial emergency? If you’re in the middle of a lawsuit, you may be torn between choosing a lawsuit settlement and a personal cash loan for assistance.
While lawsuit and cash loans online offer convenient and quick access to cash, they are two very different financial products made for different financial emergencies.
Keep reading to understand these differences, so you know which one is better for your needs.
What is a Personal Cash Loan?
A cash loan is a type of cash advance that’s available online. You can find these cash advances by typing this simple phrase into your next Internet search: cash loans near me. This phrase will produce a long list of online direct lenders that let you apply for, receive, and repay cash advances over the web.
Unlike a payday cash advance, you won’t have to pay a cash loan back in one lump sum. It’s one of the many online loans with monthly payments. This means you’ll pay back what you owe over multiple installments.
Online direct lenders will share all this information upfront before you sign a contract. If you qualify, you’ll know the amount you’re borrowing, the cost of borrowing, the size of each payment, and when each payment is due.
Generally speaking, online direct lenders recommend this cash advance for a singular emergency expense, like an unexpected car repair or vet bill. That’s because this financial product ranges from $200 to $3,000, so it can’t handle larger or long-term financial commitments. It’s also not the best option for expected expenses, as they’re meant to bridge the gap in savings so that you can take on relatively minor repairs or vet costs.
What is a Lawsuit Settlement Loan?
A lawsuit settlement loan is a cash advance against a pending claim, award, or any other class-action payment from a court.
Borrowers might consider using this financial option if they’re victims of medical malpractice or injured in a traffic accident. Their personal injury may make it impossible to work, or they may wrack up large medical bills in seeking treatment.
The problem with many lawsuits is that they can take months or even years to complete. That means, a plaintiff may have to pay out-of-pocket for any lost income or medical expenses they incur during this time.
If you don’t have insurance or savings, a lawsuit loan advances some of your expected awards in case your lawsuit takes months or even years to come to a settlement. As a result, it may be much larger than a cash loan, and you may use it to cover ongoing living expenses and medical bills.
But like any borrowing option, this lawsuit cash advance comes at a price. Since there are very few regulations limiting interest or finance charges on these advances, you can wind up paying more in interest than what the courts award you in the end.
Which One Is Better for You?
This article can’t tell you which financial option is the best choice for your unique situation. However, it shares critical information so that you can make this decision on your own. Now that you have a better understanding of your options, you can shop for the best cash advance for your emergency.