Question:
i've seen on tv about those companies that will give you money while u are waiting for your disabilty,like a loan and that u can pay back after u get your lump sum. i am very interested in finding out more about that,and are they any good
Answers:
There's always a catch.
These companies that give you a "lump sum" will take a nice chunk of your disability payments.
So don't do it.
Plus, what will you do once your lump sum runs out?
And why would you need all the money in one shot? Just take the payments as they come and spend accordingly.
These companies are a huge rip-off and you should avoid them like the plauge. What they are doing is essentially loaning you money against your future settlement, at an exorbitant interest rate. Best case scenario is that you end up "selling" your settlement for pennies on the dollar. Worst case is that your settlement ends up being less than anticipated and you still owe these guys money after everything is said and done. Something else to remember is that they will likely send some forms to your attorney to guarantee that the settlement gets paid to directly to them, not you when it finally comes through. This is to protect their investment, but if you are paying your lawyer on contingency, that means that he is guaranteeing they will get paid to even if it cuts into his fee. If that turns out to be the situation your lawyer will probably refuse to do it, and may even drop his representation to protect his interest (he still is owed his portion of the settlement). In the case where you have already settled you sell annuity payments for a lump sum. You are still losing lots of money this way because you lose not only the present value but the future value of your payments (annuities are adjusted to keep up with inflation), though you don't have all the other problems. Be patient and wait for your settlement to come through and do not get involved with these guys. You will be glad you were patient.
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