In the aftermath of a personal injury accident, many victims are left scrambling for ways to pay mounting bills while recovering from their injuries and awaiting a legal settlement. Medical expenses skyrocket, household bills rise, and paychecks dwindle because of the amount of work missed due to the injury.
Even if a lawsuit is strong and the settlement is generous, the entire legal process may take longer than expected to culminate in an actual payout. Some cases drag on for months or even years. During the interim, however, financial obligations must still be met by the injured victim.
The financial pressure personal injury plaintiffs experience can cause weakened judgment and a willingness to settle for a minimal offer from an insurer. Negative repercussions from accident injuries can resonate for years and produce incalculable financial harm to the victim. For the best-case scenario to happen, an injured person needs to hold out as long as necessary to receive the highest possible settlement amount.
During the waiting period for a personal injury lawsuit to settle, an individual can take specific steps to help lower expenses and reduce financial stress, thus allowing for a better healing process.
1. Keep Housing Expenses Low
One of the largest expenses for an individual or family is housing costs. Rental or mortgage payments, plus utilities, can quickly drain a household budget. To keep these costs low, one should consider renting or buying the minimum amount of space needed. Typically, it is wise to keep housing costs lower than 35 percent of the family’s take-home pay. Other ideas for reducing housing expenses are listed here:
- Find less expensive housing.
- If able, trade working on the rental property for reduced rent.
- Find an apartment needing a property manager and receive free or discounted rent for filling the position.
- Keep a close watch on utility expenses and reduce them when feasible. Turn off lights when possible, and minimize water use. Adjust the thermostat seasonally to reduce usage costs.
- Find a renter for a room in the house or garage space to help pay the mortgage payment.
- Keep the house well maintained to prevent costly repairs. However, do not perform unnecessary renovations.
2. Minimize Grocery Costs
Typical grocery expenses are approximately between $165 and $345 per month for one person and around $146 to $289 per week for a family of four. With some planning, though, these figures can be cut in half. A few of the many options available are:
- Make a weekly menu plan, and stick to it when grocery shopping.
- Plan a meal menu based on items that are on sale that week.
- Choose healthy snacking items that can last instead of frivolous purchases like soda and chips.
- Cook healthy meals at home instead of splurging on processed or pre-made foods.
By eliminating impulse buying and getting a handle on grocery costs, the household budget will quickly see an improvement. Also, an individual’s health will likely improve from cutting out junk food. Contrary to popular belief, healthy food can be cheaper than junk food.
3. Monthly Expenses
By carefully evaluating one’s monthly budget, it is generally easy to pinpoint some expenses that can be eliminated. Perhaps entertainment lands at the top of this list with items like cable TV costs, streaming online services, and eating out. Changing a cell phone plan or provider can usually grant a cost reduction. Plus, most individuals can readily cut utility expenses by simply monitoring usage and turning off unneeded lights.
Services with subscription charges should be evaluated for their usefulness concerning their cost. It is easy to lose track of all your monthly subscriptions. Fortunately, various apps can help you track spending related to your subscriptions, such as Truebill or Bobby.
4. Declutter and Sell the Excess
Reducing clutter and making money at the same time can bring a real sense of euphoria when the task is finally completed. Two of the best places to begin decluttering are the kitchen and closet. Locate local consignment or resale shops, check with friends who may want to purchase items, or go online to set up an account on websites that allow the sale of merchandise like Facebook Marketplace, Etsy, or eBay.
5. Medical Expenses
Ask to have medical expenses taken out of the lawsuit settlement amount. Medical creditors can put a lien on the settlement instead of requiring the injury victim to make out-of-pocket payments.
6. Request Help With Tasks From Friends and Family
When physically unable to complete necessary tasks, accident victims should seek help from friends and family before paying to have the work done. Such duties may include cooking, transportation, errands, or house cleaning.
7. Begin an Additional Income Stream
When an injury victim is no longer able to work in a previous job position due to disability from an accident, a new income source may become necessary. Online sites can offer options for short-term contractors in a variety of fields.
8. Make a Zero-Sum Budget
Zero-sum budgets are structured so that each dollar is already marked for a specific destination before a paycheck is ever received. Any additional money that remains after expenses are covered goes into an emergency fund or a retirement fund. The plan keeps money from ending up in a black hole known as unplanned spending.
9. Help Available Through Programs
Personal Injury Pre-Settlement Cash Advance
If, after using all available options, a plaintiff finds that there is not enough money to make it financially, the team at The Legal Funding Group is standing by with a possible solution. Through a personal injury pre-settlement cash advance, funds could be available quickly. Repayment is not required until the lawsuit is completed in the plaintiff’s favor. If the case is unsuccessful, money is not owed.
We have made the application process very easy and very quick. Once we get the paperwork, we will connect with the attorney right away. The Legal Funding Group has been helping financially strapped personal injury plaintiffs breathe a sigh of relief so they can remain solvent and give their attorneys sufficient time to negotiate higher settlements that the clients deserve. If this information resonates with you and fits your circumstances, let us hear from you right away so we can get the process started immediately to see if your case qualifies.