Cutting Costs and Money-Saving Tips that Last Beyond Your Pending Lawsuit

What does this little old lady and a pending lawsuit have in common?  They both move very slowly!  The worst case scenario if you are stuck behind this lovely lady is probably arriving late to your destination.  If stuck in a pending litigation, the affects can last significantly longer, especially financially.  The mortgage still needs to be paid, the utilities need to stay on, you need to put food on the table, and you may have mounting medical or other expenses resulting from the accident. How will you cope?

Lawsuit funding can provide a short-term financial lifeline to plaintiffs in a pending claim, but it is also important for our clients to exercise financial responsibility. With that in mind, Lawsuit Financial has compiled a list of simple yet effective tips to cut expenses and save money during this difficult time, and beyond.

Prioritize expenses.  There are certain bills that need to be paid before others.  Food and shelter are necessities and should be at the top of your list.  Foreclosure is not worth paying for luxuries such as cable or direct TV.

Negotiate with lenders.  Call every company to whom you make a regular payment of any kind – mortgage company or landlord, utility companies, credit card companies, cell phone and internet providers, etc. before you are months behind in payments.  Believe it or not, it’s in their best interest to help you make your payments, even if it means a lower interest rate or extending the terms. Lenders are typically more willing to work with you if you don’t wait until the account is seriously delinquent. Your mortgage company may be able to restructure your loan and utility companies may offer special programs to those experiencing a financial hardship. Compare prices of cell phone providers and ask for a plan that provides you the greatest savings based on your calling history.

 

Make a grocery list before you shop.  This will help you calculate in advance how much you will spend and avoid impulse buying.  Coupons can lead to significant savings; many coupons offer free products and can be found online at MoneySavingMom and other sites.

Shop around for better deals on insurance – auto, home, life, health, etc.  Higher deductibles and multiple policies can result in lower rates.

Sell Your Old Junk.  We’ve all heard that one person’s junk is another person’s treasure.  Look through the plethora of clothing, games, videos, books, etch you have accumulated over the years. Most will have some monetary value. Hold a garage sale or sell the items on eBay or Craigslist.  An extra benefit is you will be de-cluttering.

Work for extra money.  If you are currently employed, check with your employer to see if overtime is an option.  If this isn’t an option, make a list of your skills and talent to earn extra cash.  It can be as simple as pet sitting, baby sitting, or shoveling snow. Every penny adds up.

Network.  Networking isn’t just for business.  You may be able to barter services such as babysitting, carpooling, school books, and more.

Repair rather than replace and do the work yourself.  Can you repair the broken lamp rather than buying a new one?  Learn how to change the oil in your car so you don’t have to pay someone to do it.  A little vehicle maintenance can go a long way, too. Maintaining proper tire pressure can enhance your car’s fuel efficiency.

Look for expenses to cut out of your budget.  Do you really need satellite or cable television?  Stop eating out or look for buy one, get one free and other discounted offers. Packing your lunch can save can save nearly $100/month (based on a $5 meal, 5 days per week).

Stop impulse buying. Just because it is on sale, doesn’t mean you need it.  Before you buy, sleep on it.  Is the item a need or a want?

Lower utility bills.  Fluorescent lights last longer and use only a fraction of the energy of conventional incandescent kinds. Look for the “ENERGY STAR” label when shopping for bulbs; this means that the product passes the EPA’s standards for performance and energy consumption.  Program your thermostat so the heat or air-conditioning does not click on as often when you are not at home or while sleeping.  Weather-proof your home with caulk and weather stripping. It will save you a lot of money in the long-term.  Get in the habit of turning off ALL lights and appliances while not in use, including the television. Check the faucets & spigots in your household for leaks.  A slow dripping faucet can accumulate over two gallons per hour.  Don’t run the faucet while brushing teeth or shaving.

Avoid taking out a bank loan. A bank loan means another monthly payment and if you suffer financial hardship for an extended period of time (i.e. your lawsuit takes years to settle), you may find yourself in a downward spiral that is nearly impossible to recover from and permanently damage your credit score.  With lawsuit funding there are never monthly payments, your credit score is never impacted, and if you lose your case you owe absolutely nothing.

Understand your investments and retirement accounts.  Typically, withdrawing money from your retirement accounts is a bad idea because it as can put your retirement security in jeopardy, but it can also prevent you from going into deeper financial trouble. You may be able to borrow funds without paying taxes and penalties or qualify for a hardship withdrawal.

Planning for the future.  Once you make it through this difficult time and your case is settled, minimize the financial impact in the event of a similar situation in the future.  Keep your family on a budget and establish an emergency fund.  It will put you in charge of your money rather than money controlling your life, and give you financial peace in the event of another unforeseen situation.

Mark Bello is the CEO and General Counsel of Lawsuit Financial Corporation, a pro-justice lawsuit funding company.