On Wednesday, Federal Reserve Chair Janet Yellen announced that the Federal Reserve would raise interest rates of the first time in almost a decade. Immediately, financial publications like the Wall Street Journal predicted that average Americans will see an immediate impact in higher charges on credit products. People will see their credit card rates, mortgages and auto loans increase, taking an unsavory bite out of their monthly take home pay.
But there is good news for people who take advantage of legal funding in their struggles with insurance companies—their rates won’t go up. Why? Since legal funding is a purchase, pricing is based on the value of a legal claim, not based on their creditworthiness or what the Federal Reserve did yesterday. People with legal funding make no monthly payments and do not have contracts that adjust when rates increase. They face less risk then people who use conventional credit-based products like credit cards or personal loans. And, after an accident, less risk can provide a needed sense of security.