5 Ways to Manage Your Finances While Waiting for a Settlement
4 min read read
Published Apr 2, 2025
1. Create a "Litigation Budget"
The first step is to accept that your financial situation has changed temporarily. Sit down and list every single expense. Separate them into "Needs" (Rent, Food, Lights) and "Wants" (Streaming services, Dining out). Cut the "Wants" aggressively. This isn't forever—it's just until your settlement comes through.
2. Communicate with Creditors
Don't just stop paying bills. Call your utility companies, landlord, or mortgage lender. Explain that you were in an accident and are waiting on an insurance claim. Many companies have "hardship programs" that can pause or reduce payments temporarily if you ask.
3. Audit Your Subscriptions
Go through your bank statement for the last 3 months. You likely have recurring charges for apps or services you don't use. Canceling $50 worth of subscriptions might not seem like much, but over a 2-year lawsuit, that is $1,200 saved.
4. Look for Assistance Programs
Depending on your state, you might qualify for temporary disability benefits, SNAP (food stamps), or local charity assistance for utility bills. There is no shame in using these safety nets—they exist exactly for situations like this.
5. Use Funding Strategically
If you have cut everything and still can't make ends meet, that is when legal funding comes in. Don't use it for a vacation; use it to pay the rent or keep your car from being repossessed.
By using a pre-settlement advance to cover only your essential deficit, you relieve the pressure to settle early without eating up too much of your future payout.
