Maxing credit cards during a long injury case can cost more than a pre-settlement advance. Here's how to think about it.
Credit card APRs commonly run 20% to 30%, compounding monthly. Over 18 months of a typical injury case, a $10,000 credit card balance can grow by $3,000 to $5,000 in interest alone — and that's with you making minimum payments.
Pre-settlement funding has a total cost that's capped in the agreement, no monthly payments, and no recourse if your case loses. For comparable advance amounts and case timelines, the total cost is often lower than the credit card alternative — and structurally safer.
Credit card debt also has to be paid every month from your post-injury reduced income, while pre-settlement funding waits for the settlement.
If you're using credit cards to cover living expenses during a long case, talk to AARC about whether a pre-settlement advance would replace that debt at lower total cost.
Call (800) 297-3834 or apply online for a written cost comparison before you commit.
We'll give you a clear payoff schedule so you can compare apples to apples.