Getting into an accident will turn your world upside down. After the initial shock of the event wears off the first thought that comes to our minds is, what will we do for money? It is estimated that most Americans are less than one paycheck away from being bankrupt and homeless. This is a shocking statistic that makes most people unsure of what to do when they do come in possession of a large sum of money or if money is presented to them.
The question you may be asking is, should I apply for a settlement loan or wait it out to get the full judgment? With a settlement loan you will have cash available to you now to put you at ease and ensure that bills are paid, food is on the table and you can relax and let your body heal. The question you should be asking is, will taking that loan now really help or hurt me in the future?
Understanding your finances and finances in general is a tool everyone should have in their toolkit. When offered a lump sum of money the majority of people won’t know how to handle it. They will see it as available cash that they can do whatever with and that other problems will solve themselves in the future. This is not the way to think.
What are your monthly expenses?
Each month we should have approximately the same amount of money coming in as we do going out. The difference is our savings. Taking a look what our monthly expenses are over a six month and a year period will help us to get an average of what our expenses are. To do this for six months add up all your bills and divide by six. For twelve do the same but divide by twelve.
Don’t loan anyone money
If you get money, never loan it to anyone. The phrase “I will pay you back” will be etched on many a tombstone. When you are in an accident settlement money is yours to help you get through the tough times, not help others. It might sound cruel but facts are facts.
What will be your plan if you can’t work or work at the same job?
Employment may change after your accident. In some cases you won’t be physically able to do the job you were doing before. In other cases it may have been a job related injury and the employer let you go. All of these issues need to be taken into consideration.
What will be your settlement?
When dealing with these advances, you may be taking a large hit in regards to what you will end up after the judgment. Understanding the numbers is very important, you may get a good deal and it may not end up being a good deal. Knowing your numbers, your forecasting of the future and countless other factors will play a role in your decisions.
Go for the long game
Your decisions will have lifelong affects. Once the money for a loan or judgment is issued, that is it. Once the check clears and the money is in your account how you manage it will determine how long it will last. Make wise decisions and get well soon.