Settlement Loans Can Make Your Life Easier
You've probably seen the ads on television about settlement loans available to people who have an annuity, trust fund or other type of settlement income. If you get income from some type of lawsuit settlement or trust, you may be curious about how settlement loans work and whether taking one out is the right decision for you. This basic information about settlement loans can help you make up your mind.
What Are Settlement Loans?
Many personal injury lawsuits result in structured settlements, where an insurance company agrees to make regular payments in lieu of paying out the settlement in one lump sum. This works better for the insurance company, of course, but these payments over time also work to the benefit of the injured party. Structured payments ensure regular income over a long period of time. Unfortunately, sometimes you need cash for emergency situations and your regular payments just won't cut it. That's where settlement loans come into play.
How Settlement Loans Work
The idea behind settlement loans is simple. You have guaranteed income coming in from a trust, annuity or other type of settlement. Loan companies in Mifflin PA will lend you money if you arrange to have the loan repayments made to them directly from the settlement fund. That way the loan company is assured that they'll be paid and you have access to your settlement money sooner.
How Much Money Can You Borrow with Settlement Loans?
The amount of money you can borrow with settlement loans will depend on many factors, including the size of the settlement and the amount and timing of your payments. That's something that will be worked out between the attorneys handling your trust and settlement payments, yourself and the company that provides settlement loans.
For more information about settlement loans in [statetitle], contact a Mifflin PA loan company that makes settlement loans with your questions. If you need money for emergencies and other expenses, you can get the money you need now with a settlement loan.