There are real savings with pre-settlement funding that the critics don’t want you to know about. Some say that pre-settlement funding is an expensive proposition to personal injury litigation management. There are also things that they’re not telling you.
Lost Opportunity Costs
In the world of economics, opportunity costs are defined as those opportunities forgone in the choice of one expenditure over another. For a consumer with a fixed and / or limited income, settling a personal injury lawsuit early and for whatever the defense will throw at them often feels like the only way out of mounting bills. However, in settling early there is often a lost opportunity cost to the plaintiff which is the difference between what the defense will settle for just to get the case off the dockets versus what the case may be worth at a later date or at trial.
Pre-settlement funding gives plaintiffs the option to wait for a more fair settlement or a verdict if they so choose with the risk being placed on the funder should the case go south.
The Cost of Bad Credit
Then there’s the cost of bad credit which is well documented as having a negative effect on consumer interest rates, mortgage rates, credit card rates, and auto loan rates – not to mention one’s career. Here’s what some of the experts have to say:
1. “Because lenders often charge consumers with low credit scores higher interest rates, consumers can end up paying thousands of dollars more than someone with better credit for the same mortgage or auto loan.” (Washington Post)
2. “Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as “sub-prime” cards) typically require high setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.” (Lexington Law)
3. “Lifetime cost of bad credit: $201,712 (2011). If you’re not doing all you can to keep your credit scores high, you’re borrowing trouble — and you could pay a very heavy price.” (MSN Money)
4. “Bad credit can cost you a job. If you’re looking to change careers, find a new job, get promoted, or just hang onto the one you have, a messy credit report can trip you up.” (Forbes)
While there are critics who will tell personal injury plaintiffs that pre-settlement funding is expensive, remember that they’re not telling you about the potential lost opportunity costs or the costs of bad credit – should a plaintiff find him/herself in serious debt.
At USClaims, we offer pre-settlement funding, if a case is qualified for pre-settlement funding then we would purchase a portion of the proceeds of the anticipated court judgment or settlement for some cash now. USClaims only gets paid if a case is won or has reached a settlement! Apply now or call us today at 1-877-USCLAIMS to learn more.