Personal injury incidents can be hard on the wallet, especially if you incur medical expenses and cannot work your normal job while you recover. Bills can start to stack up in a hurry, and that can leave you wondering how to best cover these expenses while your injury case plays out. In today’s blog, we share some tips on what you should do, as well as what actions you’ll want to avoid when you’re waiting on a personal injury payout.
I Need Money Now
If you need money now, our best advice is to look into your options and figure out what will be the least costly. That sentence may sound obvious, but a lot of times people can end up getting a loan very quickly, but to do so they need to take on some really unfavorable terms. Here’s some advice for how you can avoid that.
For starters, sync up with an attorney. They’ll be able to get your case moving right away and put pressure on the insurance company to make a fair offer. Injury attorneys are paid on a contingency basis, meaning you only owe money in the event you win your case, and you won’t have to pay until the case has concluded, so you’ll never need to front money to your lawyer, and they’ll only get a small fraction of the large award they work to secure for you. A lawyer will also help you file your medical claims after you’ve received care so that they collect money from another party instead of you. Instead of paying out of pocket and then being compensated for these expenses in a settlement, a lawyer can help file your claim so that insurance foots the bill for some of these medical expenses.
If you’re going to get a personal loan, really take the time to read the fine print. A lot of places will charge high interest rates for quick access to cash, and that can severely eat into your total award. There are some loan agencies that will offer a pre-settlement loan that provides you with access to cash in return for part of your award along with interest, but again, if you don’t have to take these out, try to avoid it because you’ll always end up paying more than what you received. If you only need a small amount, consider asking a friend or family member for a loan as opposed to getting a pre-settlement loan or putting expenses on your credit card if that has a high APR. We know it’s not ideal, but the less you can take, the less you’ll have to give back. Have your lawyer or someone you trust read through the loan terms and ensure you’re not in for a surprise down the road.
When You Get A Settlement Offer
Finally, we know that it can be extremely enticing to jump on that first settlement offer, especially if you don’t have a lawyer by your side yet. $50,000 may seem like a huge offer, but if you haven’t really dug into your expenses and your future costs, you could be leaving a lot of money on the table. It is almost always in your best interest to counter or outright reject an initial offer. The insurance company wants to end the case as quickly and as cheaply as possible, and oftentimes they prey on a person’s desire to get their cash and end their case. If you can hold out for just a little longer, you’ll likely get a much larger award, especially if you’re working with a lawyer.
We know that finances are never an easy subject to talk about, and we can’t understand all the financial obligations that you and your family face after an injury, but really try to find other means of paying these obligations instead of falling into a predatory loan. You will get your money, it just takes time, and you’re really cutting into your award if you take a $5,000 award but it costs $12,500 by the time you pay it off. Read the terms of your loan carefully and have a trusted source review the terms before you agree to cash advances. And as always, connect with a lawyer if you want the best chance at securing the largest award possible to help address all of your financial obligations.
For more information, or for help with your personal injury case, reach out to the team at Hey Workers today.