Yes, people get more loans these days for a variety of reasons, yet it’s not always as simple as it may seem. The loan approval process still has to go through several steps before it’s finally settled. While people can get loans for anything from buying cars to college tuition, some things beg the question of “is this a valid reason to get a loan approval?” One of these points is getting a loan to pay legal expenses.
Can you get a loan to pay legal fees?
The short answer is yes, you can. Legal expenses can be complicated and they vary in type. You have a retainer, which is basically a down payment on the services of the lawyer or law firm you’re going to be hiring before they start working on the case, and it’s used to cover part of the expenses that will be incurred during the legal proceedings. Then you have the lawyers who charge by the hour, and they can be quite hefty too –– some get charged rates as high as a hundred dollars per hour! There’s also a contingency fee, which is basically a percentage of your awarded money if you win the case.
It’s important you understand these different costs because based on them, you’ll be able to determine how much exactly you need when applying for a loan.
How different is a legal expenses loan from other types?
One thing about legal expenses is that sometimes getting a loan is the person’s only option. The good news is, however, some lenders don’t require hard credit checks before allowing you to learn about the rates and terms. This means that you can actually look around for a loan without messing with your credit score. But it may not be the case with other types of loans. While some lenders will strictly check your credit regardless of the type of loan you’re applying for, there are some who offer disability loans online without the tedious hard credit checks. You can either use such a loan to pay for your hospital bills or fund your legal expenses in case you have an undergoing disability benefits claim in court.
In most cases, yes it is. No one wants to be in debt, but sometimes you don’t have much choice. Legal expenses can be quite high and in some cases might be in the tens of thousands of dollars. Maybe getting a loan to pay those hefty fees is a choice you’ll have to consider because if you’re stuck in a legal dispute, you’ll want the best of the best working on it. And it’s a safe bet that the best lawyers out there don’t work for minimum wages. While a legal expenses loan does have its downsides, it’s also less hassle-free than getting a mortgage loan or a car loan, because you might end up winning some money at the end of your legal dispute, which isn’t the case with buying a car or a house. At the end of the day, if you have to pay off a lawyer and you have no money, then a legal expenses loan is your best option.
