Are you looking to get a new structured settlement loan? If you’re still unsure about how these loans can help you tide over your crisis, here is all you need to know about it.
What are structured settlements?
Structured settlements provide the recipient with a regular source of income. But things may not always go as planned; the payment amount may not be sufficient at times where you need to come up with substantial payments like down payment for a house or automobile. At this time, it is important to have cash at hand even though you are guaranteed to have money in the long run. One option here is to take a loan on the settlement that helps tide over the crisis. Now, you can get settlement loan money for lunch easily.
The benefits
So, what are the benefits of taking the loan? What do you need to know to get the right structured settlement loan that will help you? What are the things that you need to keep in mind? Here is what you need to know when considering a settlement loan.
- Read the fine print in the settlement: It is important to read and understand the clauses attached to the settlement. You will be entitled to the money agreed upon, but the agreement may contain additional info as to what may or may not be done on the settlement. Some settlements may incur additional costs on the payee or penalize him for taking loans. However, this may not be the case at all times; some payers may not have any such objections. The payee is free to draw a loan on the settlement amount.
- Find a trusted company: Use your online resources to narrow down on a trusted company that specializes in structured settlement loans. This may take some time as you would need to study the functioning of the company, the fees, the reviews, the success rate, etc. The feedback from people you know should also be considered when making the decision.
- Paper trail: Ensure that all the paper trail required for the loan process is thorough and accurate. This will prevent any delay in the process. This is probably one of the lengthiest steps in the loan application process but also an important one. Maintain a record of all the documents submitted for your reference.
- Court: All settlement loans are subject to an approval by a judge. The approval is granted only if the loan is justified and the loan providing company does not gain any undue advantage.
- Collecting the loan money: The payee is entitled to the money only after the judge approves the loan. The payee can receive the amount in the form of the check, a wire transfer, or an account deposit.
The settlement loan can be obtained as early as a fortnight or can take as long as three months. It takes a longer time than traditional loans to prevent any foul play from the parties involved.
