Settlement Advances to Pay for ADR???

[hezeronek]

After almost two years of heckling, I've pretty much come to the conclusion that my battle to get BCBS to pay for my lumbar ADR surgery is lost. My lawyer is confident I will get the $50K (policy limit - and enuff to pay for ADR with Dr. B) settlement from my underinsured motorist policy, but that will unfortunately take 2-4 more years. Neither my back, nor my sanity have that kind of time. The mere thought of waiting that long to get the chance to return to life is excruciating, and with all the bills I haven't been able to pay the last two years not being able to work have left my credit score in the crapper. I don't have any rich relatives either.

So, I'm getting creative (read - desperate) here... Is anyone familiar with how settlement advances work, or have any experience with them at all? Websites make them sound all peachy and everything. What's the catch?

[2cool4U]

The catch is that they are a loan of the settlement amount at a very high interest rate, higher than any bank or credit card company would charge, possibly the highest allowable by law. I've seen fine print quoting annual interest rates of 22-25%.

You may be able to borrow against some other asset, such as a home equity loan if needed. Interest rates for these are hovering in the 5% range.

[hezeronek]

Thanks. I was wondering what that was all about. I think this may be my only option. I don't own anything but my car, so there isn't much to borrow against. I really don't care a whole lot about the interest rate, as long as I can get my surgery. Chances are I'll be able to go back to work after that. Disability is a godsend, but doesn't offer a whole lot, especially in comparison to what I used to bring in.

Do you know... if the interest rates are so high for these settlement loans, can I end up owing them money even after I send them my settlement?

[hezeronek]

I feel so blessed. Been in tears for most the night tonight... my grandmother called me this evening and said she's going to pull money from her investment stocks to loan me until I get my settlement. I didn't even know she had it, and would have never even considered asking. 30K isn't exactly chump change. Unless, of course you work on Wall Street or go by the name Bill Gates.

She's giving me the chance to get my life back, and I honestly don't think there are words that could possibly describe my gratitude. Even after I give her the money back from the settlement, I don't think I could ever repay her for this one.