Were you recently injured and are no longer able to work? Are your bills starting to pile up and are your savings being drained? Being injured and unable to work is an extremely unfortunate situation but there are still many options to help you get through this hard time. A loan in particular is a good way to spread out your costs and make it more affordable.
Moreover, if you got hurt due to another person’s negligence and would like to start a lawsuit. A loan can cover the costs of the litigation process.
A personal injury loan has many names including settlement loans, lawsuit loans or litigation loans. This loan is a type of financing that can be used to help cover the cost of any number of expenses after you experience an accident that leaves you unable to work and with bills, you are unable to cover. It can also help cover the costs associated with lawsuits. Unfortunately, lawsuits can drag on and can cost a number in court and lawyer fees.
If you get approved for a personal injury loan, the loan is deposited directly into your bank account. You will then follow a designated plan, wherein you repay your borrowings through equal installments (with interest). The funds can then be used to cover any expenses related to your personal injury.
Whether you’re trying to cover the cost of a medical condition, an injury or an accident, it’s important to select a payment solution that works for your financial situation. You should also spend some time researching lenders in your area. Be sure they are a legitimate business with a solid reputation among their clients.
Most Canadian lenders can offer you this lump sum of liquid money. To receive the best loan amounts, rates, and repayment conditions, it’s best to apply when you have healthy finances and a high credit score (660 – 900). You can also earn more positive results by getting a cosigner or offering collateral (loan security).
If you have enough home equity (20-25% minimum), many mortgage lenders will allow you to take out a loan or open a revolving line of credit against it.
Just keep in mind that you could be potentially putting your house at risk if you default on your payments as it is being used as collateral.
All this said the right home equity loan or HELOC can help you secure more money than most other financing solutions.
If your injury or accident is preventing you from working and has caused you to rack up unmanageable bills, you might be able to qualify for a debt consolidation loan with a lender or enter a debt consolidation program through a credit counselling agency. Both options have the same goal of reducing multiple debts at once, leaving you with a single monthly repayment plan to keep up with.
A debt consolidation loan may be the best choice when your finances and credit are healthy enough to qualify for a favourable plan and interest rate. A debt consolidation program might be a better option if you aren’t eligible for a loan or prefer the guidance of a professional counsellor.
While you may be able to work, drive, and perform your daily activities following a minor incident, a major injury can leave you in pain or with reduced mobility for weeks, even months at a time.
Some injuries are also quite expensive during their recovery periods, especially when you factor any medications or medical appointments you may need. What’s more, injuries can happen when you’re least expecting, so it’s smart to have a backup plan.
A personal injury loan can be a good idea if you need help covering:
If your debts get totally out of hand, your two final resorts would be to file a consumer proposal or declare personal bankruptcy. Both procedures can only be administered by a Licensed Insolvency Trustee and will become part of public record under the regulations Canada’s Bankruptcy and Insolvency Act.
Although they can quickly free you from your debts and debt collection penalties, both procedures can have a severe negative impact on your finances and credit report. Only attempt a consumer proposal or bankruptcy if you’ve truly exhausted your other options.
A personal injury loan can provide you with the financial relief you need to cover bills and any litigation costs. That way you can focus on the important things, like recovering from your injury and getting back to work.
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