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Thinking of taking out an accident loan? Here’s what you need to know

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Being involved in a vehicle accident is not only physically painful and emotionally draining but it can bring an unexpected financial burden too. The cost of unexpected medical bills, car repairs and even temporary car hire are all outgoing costs that you simply weren’t prepared for and you’re probably resenting having to pay out for something that wasn’t even your fault! An auto accident loan may have been something you heard of, but have hopefully never had to use before.

You may be familiar with something called an accident loan, but are unsure of the consequences of taking out a loan? Fear not — we’ve got some options available to you to have immediate financial help after having a car accident.

Our team of experienced lawyers handles cases just like yours every year that often rely on that initial financial support to help clients so we often find ourselves explaining what accident loans are and what they can offer.

We’ve got some insider experience with accident loans and want to share what we know so you can make your own decision about financing the short term additional costs of a crash.

The injury attorneys at Phoenix Accident and Injury Law Firm near you have significant experience in helping clients who have been in an auto accident and are thinking of taking our an accident loan.  Our offices are conveniently located in nearby Chandler, Peoria, and North Phoenix, and we can meet in-person at our nearby offices, over the phone, or video call.  You can contact us for a free consultation, or read on to find out more.

By the way, we will also help with other problems that have cost you sleep, like getting a rental car very soon and finding a nearby doctor who can help you. Even the best legal team isn’t good enough if your quality of life isn’t sustainable while justice and compensation are on the way. The whole point of legal action is to regain quality of life, so we help you long-term as attorneys and short-term as your go-to people. Our familiarity with the local Phoenix courts makes us confident that we can help you get the best settlement possible.

What you need to know about taking out a pre-settlement accident loan

A pre-settlement loan is a sum of money borrowed by someone who is currently pursuing a personal injury claim. As you can imagine, the sudden unexpected costs that an accident causes are often met with panic. So, the idea of applying for a loan can seem like a quick fix before you receive compensation.

Like with most things, there are a few factors to consider before you hit ‘apply’ on that seemingly no-strings loan offer;

  • Accident loans typically have much higher interest rates associated with them, and many companies offering high payout loans have really stringent contractual agreements. Make sure to read the small print before committing to anything
    Lenders will consider how likely your case is to actually win when it reaches court, before deciding whether or not to lend you a loan. There’s always a risk that a plaintiff’s case might fail, and pre-settlement funding companies can be particular
    This also means the loan companies will have higher fees and payback arrangements so make sure you’re completely aware of their payback rates before taking out the loan
    The great news is, lenders can’t come after your personal assets if you fail to make payments, and that may leave the lenders with empty pockets if your case unexpectedly falls apart. This does mean their high-interest rates and fees are justified in the face of risky and potentially unrecoverable loans.
    Go on recommendations- if you know someone who has used an accident loan lender before, ask them for the lowdown before deciding on whether you need to take one out

We’d always recommend writing a pros and cons list before committing to any kind of loan, is there any other way to help finance your outgoings in the aftermath of an accident that will avoid getting into debt through no fault of your own.

Get Help Now 

At Phoenix Accident and Injury Law Firm near you, we have more than 15 years of experience helping clients obtain compensation for their personal injuries, and obtaining accident loans in the Phoenix area. When you’re ready to talk, please contact our office to arrange a free initial consultation by phone or at our Chandler office, conveniently located near you.

If you have been in an auto accident and are thinking about an accident loan, contact Phoenix Accident and Injury Law Firm in nearby Chandler, AZ to speak with an experienced personal injury attorney. We provide personal injury legal services to clients in your area including Chandler, Gilbert, Mesa, Scottsdale, Tempe, and Peoria.