How Many Pre-Settlement Loans Can I Get?

Pre-settlement loans can give you the cash you need to manage your personal expenses and help you get through to the receipt of your settlement. But what if the first loan isn’t enough? Can you get another loan to help you meet all your expenses? And if so, how many loans can you get?

The Basics of Pre-Settlement Loans

We'll start with a basic explanation of what pre-settlement loans are, in case you aren't familiar. These loans, sometimes called settlement advances, pre-settlement funding, or other names, are designed to provide plaintiffs with an advance of cash while they're waiting for their settlement money.

As a borrower, you'll fill out a brief application with your personal information and contact information for the law firm you're working with. As long as your case has a high potential of payout, you'll likely qualify for a loan of a specific amount, based on the nature of your case. Once approved, you will get the money quickly, and you can use that money however you want.

Once your settlement comes in, you'll pay back the principal plus the fee – and you can move on with your life.

Why One Loan May Not Be Enough

One loan may not be enough, however. After taking out the loan, you may discover:

  • Higher expenses. Your personal expenses may be higher than you originally anticipated. You may have to attend several follow-up appointments for medical needs, or you may be out of work longer than you expected, reducing your income and therefore limiting your financial capabilities. In any case, the initial payout may not be enough to help you get through this tough period of time.
  • Low initial payout. You may also struggle with a low initial payout. If you were only approved for a small amount of money, or if you took out a loan for less than the maximum approved amount, you might be stuck wanting more.
  • Prolonged processing. The most common reason why one settlement loan may not be enough is prolonged processing. Lawsuits take a long time to reach a settlement, and even longer for plaintiffs to get their payout. If there are delays during this process, or if negotiations get more complicated than originally anticipated, you might be stuck waiting months longer than you initially thought.

How Many Pre-Settlement Loans Can I Get?

So how many pre-settlement loans can you actually get? Is it possible to get more than one?

The answer is yes; you can get more than one pre-settlement loan. In fact, there's no limit on the number of pre-settlement loans that you can get. The real limiting factor here is the value of your case.

It is important to remember that whatever you borrow you're going to have to pay back. Pre-settlement loans are typically non-recourse, meaning if you don't win a settlement, you won't owe the money back – but if you take out multiple loans you could end up in a situation where you have to pay back more money than you won.

Best Practices for Getting Multiple Pre-Settlement Loans

If you’re thinking about getting multiple pre-settlement loans, make sure you:

  • Understand the fees, terms, and conditions. Always investigate the fees, terms, and conditions. Make sure you understand what you're responsible for and how this loan will play out.
  • Have a plan for the money. Don't take out a loan just for the sake of getting money to spend indiscriminately. You should have a plan for how you're going to use the money before you take out this loan.
  • Try to streamline the process. Just because you can take out multiple loans doesn't mean you should. Try to streamline the process by keeping things simple.
  • Be prepared to pay back what you borrow. Always have a plan for how you're going to pay back what you borrow. If you're in line to win a large settlement, this shouldn't be much of an issue – but you can't afford to forget about it.

What to Do If You’re Still Financially Struggling

If you're still financially struggling after taking out multiple loans, consider taking the following courses of action:

  • Cut your personal expenses. Reduce your cost of living and cut unnecessary expenses.
  • Pick up part-time work. Consider getting a part-time job or starting a side gig to establish an extra line of income.
  • Ask for support. Ask your friends and family members for additional financial support.
  • Get additional loans. Conventional loans can be risky, but they can also be an effective financial last resort.

Whether you're applying for your first pre-settlement loan or an additional pre-settlement loan, the application itself is very simple. In just a few minutes, you could be well on your way to getting the money you need to make ends meet until your settlement arrives. Check it out for yourself and start the application process today!