If you are involved in an accident that leaves you with injuries, the purpose of your personal injury settlement is to help you get back on your feet.
Unfortunately, while you are legally entitled to compensation for the injuries caused by the negligence of someone else, injury settlements typically take months to resolve, sometimes even years.
While litigation drags on, you’ll find yourself dealing with everyday expenses as well as medical bills and medication bills, all while requiring time off work to recover from your injuries.
So, with expenses mounting, income impacted, and your settlement nowhere in sight, how can you stay on track financially while waiting for your compensation to arrive?
Luckily, there are some simple ways you can explore to generate the finances you need to stay afloat at this challenging time.
Chart Your Expenses
Perhaps you are looking to take out legal funding to plug the financial gap until your settlement comes through. If so, a funding company can offer you a cash advance in exchange for a pre-agreed portion of your settlement when it arrives. If you lose your case, you repay nothing.
If you decide this is the most efficient route to short-term financial stability while you wait for your settlement, the legal funding company will request all documentation related to your case from your attorney. You need to hire an attorney to qualify for legal funding.
This documentation will include past and present medical expenses, legal fees, and other routine monthly expenses.
By tracking all your expenses, you can give the lender a stronger understanding of how much money you need. Keeping all documentation will also streamline the rest of the claims process, enabling you to get the compensation you deserve, even if you’re struggling right now.
Create A Budget and Stick to It
If you have been injured in an accident, you will find yourself facing unexpected financial considerations.
In addition to your everyday expenses, you will also be dealing with insurance bills, medical bills, and legal fees.
Whether you use pen and paper or a digital method, create a workable budget so you know how much you need for the essentials. Be realistic rather than ambitious when budgeting. You must create a budget you feel confident of sticking with.
Focus on your recovery and look forward to your settlement while doing everything you can to stay on track in the meantime.
Start A Savings Plan
Maybe you have been unexpectedly injured but you have an emergency savings fund in place. If so, you could consider tapping into this fund to defray your short-term expenses.
If you don’t have savings, you may have a retirement account you could leverage. Following this route will likely incur stiff penalties, though.
Using your savings can be a smart move if you are confident that your forthcoming settlement will give you enough to replenish these funds.
Assuming you have stayed above water financially while waiting for your settlement, you could use the arrival of your compensation as the perfect time to start a savings plan or to add to your existing savings. Most banks recommend aiming to save between 10% and 15% of your income.
Even if you decide to obtain legal funding to help you through this rough patch, you’ll still need to sharpen your financial management skills to successfully negotiate the aftermath of an accident in which you are injured.
Retaining an experienced personal injury lawyer is the most effective method of getting the most out of any potential settlement.
Not only can your attorney help you to win your personal injury lawsuit, but they can also help you to address any immediate financial needs. Be transparent with your lawyer if you find yourself in any financial duress and explore various ideas of short-term funding with them so you can arrive at the most appropriate method for your circumstances.