Were you recently injured and are no longer able to work? Are your bills starting to pile up and are your savings being drained? Loans Canada can help you qualify for a private loan that will help you regain control over your finances. Being injured and also unable to work is an extremely unfortunate situation but there is still many options to help you get through this hard time. Loans Canada wants to help you get back on your feet, we’re not like banks who only want to benefit themselves. We work hard to get you what you need.
What is a Personal Injury Loan?
A personal injury 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 or leaves you with bills you are unable to cover.
Typically, the loan is deposited directly into your bank account shortly after your application is approved. You will then follow a designated plan, wherein you repay your borrowings through equal installments (with interest).
Personal injury financing can help you pay for…
- Medical bills
- Legal bills
- Massages and physiotherapy
- Daily expenses (groceries, etc.)
- Medical supplies (bandages, etc.)
- Personal and public transport (taxis, etc.)
- Prescription medications and ointments
- Credit card debt incurred during the accident
- A home office while you recover
Common Injuries That Require Emergency Financing
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.
Some of the common injuries that may require emergency financing include, but aren’t limited to…
- Personal injuries and accidents
- Travel-related injuries and accidents
- Vehicular accidents
- Workplace injuries
- Sudden illnesses and chronic conditions
- Dental emergencies
Is it ever a good idea to use your credit card for an emergency? Find out here.
What Are Your Personal Injury Financing Options?
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.
Although different lenders offer different choices, fees, and interest rates, some of the most effective personal injury financing options include…
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).
Home Equity Loan or Line of Credit
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.
- Home Equity Loan – You can access up to 80% of your property’s estimated market value, minus the outstanding balance of your primary mortgage.
- HELOC – you can access 65-85% of your home’s value, also minus your original mortgage balance.
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.
For a more in-depth look at home equity loans vs. HELOC, click here.
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 favorable 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.
Consumer Proposal or Bankruptcy
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.
- Consumer Proposal – You must have $5,000 – $250,000 of unsecured debt to qualify. Your trustee will negotiate to have your final debt balance reduced and repaid through monthly installments over 1 – 5 years maximum.
- Bankruptcy – You must have at least $1,000 of unsecured debt but there is no set debt limit to qualify. Here, you will make a series of court-assigned payments, such as surplus income payments, if your income crosses a specific threshold. If your debts are large enough, you might also have to surrender your assets (house, vehicle, etc.) as compensation.
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.
At Loans Canada we want to help you with your financial situation so that you can pay for your medical bills and focus on the important things, like recovering from your injury and getting back to work.