Plaintiffs tend to think that a settlement loan, also known as a lawsuit loan is only for someone in the middle of financial hardship; however this is far from the truth. It’s possible to use a lawsuit loan during your pending lawsuit as an investment tool. You can use the money in many different ways; however you should always know that any type of investment comes with risk. The benefit to the plaintiff is if they lose their lawsuit they aren’t required to pay back the settlement loan, so if you lose both your case and your investment you would still be even at the end. However, if you win your case and lose your investment you are out the original investment amount. Make sure you understand the risks prior to applying for a lawsuit settlement as an investment. debt collection statute of limitations
You’re probably wondering how I use the cash from my lawsuit loan as an investment. The answer is simple, for whatever you’d like! During the 2008-2009 housing market collapse in the US you are able to purchase homes at 30-40% less than they would of cost in 2006. This allows the plaintiff to purchase a new home, with a large down payment or even paid in full. Since your lawsuit could take years to settlement by the time you actually receive money from your settlement housing prices might have started to rise again; making a missed opportunity by the plaintiff. If you’re considering buying a new home with your lawsuit settlement consider using a lawsuit loan to get cash now to purchase a home while prices are in favor of the buyer.
Plaintiffs have also started using settlement loans to get into the stock market. This does have risk behind it since you could lose money, however if you successfully turn a profit not only would you get your original investment back you can even cover the interest and fees attached to your settlement loan and actually have made money. This type of situation would require someone who is adept with the stock market and understands how to properly buy and sell stocks. With a settlement loan you could make a killing on the market, however the plaintiff should only use their settlement loan for this if they know what they are doing.
Plaintiffs can also use a lawsuit settlement loan to start a new business, it’s an excellent way to get the start-up cash you would need and prevent you from having to find investors or take out a traditional loan; remember, the money from a settlement loan is yours and you’re not actually borrowing money, you’re just getting your money advanced to you via a settlement loan in return for interest on the advanced amount. If you’re interested in starting a new business and are in the middle of a pending lawsuit than a settlement loan might be right for you.
Regardless of how you use your settlement loan advance as an investment you need to remember you’re taking a risk. You could lose all your money, but hey that’s the game behind investing. Since you have a no-risk option it’s worth a shot if it’s viable in your situation. If you have medical bills and other payments to make I wouldn’t suggest using your settlement loan as an investment funding source. Make the right decision on whether to use your money for investing or for financial support during your pending lawsuit.