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Being involved in a car accident is never something people want to deal with, especially if it means taking time off of work to tend to injuries and other legal proceedings. Once the shock of being in an accident has worn off, it’s time to start taking steps to return your life to normalcy, such as renting a car until yours is fixed or paying medical bills.
Covering all of this can be a challenge when you’re out of work and have no incoming income. It leaves you questioning the proper steps to take when attempting to recover the money you lost following an accident.
Here are some tips to follow if you want to ease the financial load you’ve taken on after your accident.
1. Hire a Lawyer
The first step in recouping your money is to hire a lawyer. Even an Albuquerque drunk driving accident attorney can help you determine what steps to take next. They can also provide deeper insight into potential outcomes for your case.
If you’ve never been involved in an accident, it’s crucial to consult someone with experience in trying these cases; otherwise, you could lose more money than you can afford to lose. Before you hire an attorney, the first thing you want to do is ensure that they specialize in car accident cases.
When you visit the attorney’s website, you’ll find that they may specialize in several areas, which is when you need to ask them how often they try car accident cases. Once you’ve created a list of potential lawyers for your case, you’ll want to schedule consultations with each of them to narrow down which one you want to work with.
And being that money is tight now; you’ll need to ask them what the retainer fees and ongoing case fees are for working with them. You don’t want any surprises when your invoice arrives in your email because that can present more stress that you won’t want to deal with right now.
2. Refinance Your Loans
There are several reasons that people take out loans, whether it’s to cover school costs or a mortgage the last thing you want to worry about after a car accident is paying them back. Mainly because you might not be in a position to provide the payments, which can cause you to default on the loan.
Instead of waiting for the loan to go into default mode, which can add additional monetary penalties on top of the overdue payment, take action to speak to your lender ahead of time. Let them know your current position and the cause of this.
From there, they can discuss your options for paying off your loan. In such a case, it could mean paying a smaller amount until you can get your finances in order and begin paying your original payments again.
When you have bills to take care of, it’s essential that you communicate with the bill collectors as early as possible. It shows you’re taking the initiative and makes it more likely that they will find a way to work with you versus sending your account to collections or adding late fees on top of what you already owe.
3. Reduce Expenses Where Necessary
Have you ever seen a celebrity that no longer works, and begins to change the way they live? It’s because they’ve had to reduce their expenses to conserve money and reconfigure their lives.
It means they understand that the way they once lived is no longer possible, and to ensure they can continue living and thriving, they have to begin living within their new norm. After you’ve been involved in an accident, you must do the same thing until your finances are back in order.
It’s not about cutting everything out, but you will need to reduce expenses that are no longer necessary. The best way to do this is to sit down and create a list of the expenses you have that are necessities.
For instance, these expenses could be paying your utility bill or paying your mortgage, whereas something that’s not a necessity would be eating out multiple times during the week. It’s not going to last forever, but for the time being, you need to look into ways to save as much money as possible.
4. Use Your Insurance Wisely
After an accident, the first thing you need to do is review your insurance policy. You’ll want to know where you’re covered and for how much. Does your insurance cover medical expenses? Will it cover the repair of your car?
Understanding these things can help you plan better, and it will allow you to ask the right questions when you contact your insurance company. It’s better to be equipped with many questions about your policy than to pay out of pocket and miss out on using the coverage you pay for.
Recovering Financially After An Accident
Recovering financially after an accident can be challenging, but it’s not impossible. It’s best to hire an attorney that’s worked on car accidents and has the experience to fight your case.
You should also look into reducing your expenses as best as you can. The more you do now, the better off you’ll be financial as you continue getting your life back on track.