Separation, divorce and child custody is easier accomplished without worrying about the lack of money for divorce financing and limited resources. Let’s look at a few quick ways to get the money you need for divorce and custody lawyers.
One Fast, Easy Way to Get Money For Your Divorce Fee Is With A Loan
Personal Loans from Your Bank or Credit Union or Divorce Loans
One of the fastest ways to get divorce funding is with a loan. Remember there are good loans and there are bad loans. The type of loan you choose will set the course for your financial future for the next several years.
Let’s look at the two most commonly used avenues for acquiring money for custody lawyers and divorce legal fees.
Taking out a “Personal Loan” is easy to do if you have good credit and a history of good credit usage. Most personal loans will not require any collateral if your credit is good and you own a home or a late model car. (That shows the lender you are responsible with loan payments.)
“Divorce Loans” or “Attorney Finance Loans” for legal fees are commonly used every day, but do these loans have your best interests in mind? These loans carry some of the highest interest rates available. To get one of these loans unsecured, you will have to have a prime credit rating.
Many young people that find themselves trying to find divorce funding are already paying on an auto loan. Adding another loan payment each month would break their budget.
The biggest drawback to getting a personal loan is the interest rate. Personal loans carry the highest interest rates (APR) of most types of standard loans. They are designed to be unsecured and short term.
If you set up a divorce finance loan with long terms to get lower payments, you will be paying the highest interest fee for the money you are borrowing.
Auto Refinance Loans
If you own a late model car that you have paid off or are currently paying a car loan on, you have probably built up some equity in that car.
“An Auto Refinance Loan” is a good choice for many people seeking divorce loans because you are not limited by your credit score, and they can carry a lower APR.
Even people with bad credit can qualify for a car refinance because the loan is secured by the car.
The new refinance loan converts the equity from your car to cash and allows you to use the money for whatever you need it for including paying for divorce and child custody lawyers.
Small personal loans should only be used as a last resort. If you do not have enough equity in your car loan to cover the amount you need you may want to consider refinancing first and then use a personal loan for the remainder. This loan will be smaller and easier to fay off first.
Simple Benefits of car refinance Loans For Legal Fees
- The borrower has only one monthly payment and one loan that pays for their vehicle and divorce fees.
- Even people with bad credit can qualify for low monthly payments.
- The refinance loan is secured by the car, so you qualify for a lower APR
- Refinance loans are easier to get than personal loans or divorce funding loans.
- In many cases, refinancing can lower the monthly payment you had by extending your loan terms.
This is a fast way to get the money for paying a retainer for your lawyer and the legal fees or your divorce and child custody suit.
This simple example shows you how it works- Let’s say you own a car that is four years old and is worth $15,000. You owe $8,000 to pay it off. If you refinance the car, you can refinance for the full $15,000 and use the equity of $7,000 for your divorce legal fees.
Your car payments may increase slightly to compensate for the new loan, but you still have a lower APR than you can get with an unsecured personal loan.
Best of all you still only have one loan and one loan payment!
Many people have lower monthly payments and a lower APR by extending their loan term by a couple of years. You will also be paying far less per month, than taking out a personal loan and adding it to the car payment you have now.
In most cases, you can extend the loan term and repair your credit at the same time. Your payments can be lower than they are now while putting money in your hand for other uses.
I would always advise a car refinance loan over a personal loan especially if you have a low credit score. This real life story will help you understand why.
A woman was recently going through a separation and moved out, taking her child with her. She needed money to pay for her attorney retainer and legal fees associated with child custody cases.
She had good credit but very little savings. Without considering refinancing her car and without seeking advice she took out a personal loan for $10,000 with an 8.99% APR.
Later she found out that she could have done much better if she had refinanced her car instead. Her combined car loan and personal loan payments came to $486.00 a month, and as a single mom, she was finding it difficult to pay this amount.
She took immediate steps to correct her bad choice.
She refinanced her car loan, paid down her personal loan, lowered her monthly payments to $353.03 and had $11,000 to pay her lawyer and her legal fees.
This is how it looks on paper.