Inflation Is Squeezing Your Clients—Here’s How to Help Them Hold Out for a Fair Settlement

Golden Pear

Inflation isn’t always visible in a case file—but it’s showing up in every personal injury attorney’s day-to-day reality. In 2025, rent is higher, food costs more, and medical care isn't getting any cheaper.

For injured plaintiffs, this economic pressure creates a dangerous tradeoff: settle fast for less, or wait for justice while bills pile up.

And for attorneys? It creates an uphill battle to protect the true value of a case when your client’s financial stability is cracking under inflation.

Let’s break down how rising costs are silently shaping personal injury outcomes—and how you can help clients hold the line.

The 2025 Inflation Squeeze: Rising Costs of Living and Care

Inflation might not be spiking like it did in 2022, but its effects haven’t gone away.

Plaintiffs waiting on settlements in 2025 are still navigating:

  • Steep rent hikes, especially in high-cost cities like New York

  • Higher grocery bills, utility costs, and transportation expenses

  • Rising out-of-pocket medical costs—even with insurance

For someone recovering from an injury and unable to work, these aren’t just annoyances. They’re make-or-break realities.

It’s not just the cost of living—it’s the cost of waiting.

When Cost of Living Becomes Case Pressure

As attorneys, we often focus on the legal strategy: strong evidence, consistent treatment, and a reasonable timeline to build value.

But your client is living a very different timeline—one where their rent is due every month and their prescription refills aren't optional.

That pressure often leads to a single decision:
“I’ll just take the offer.”

And unfortunately, that offer is often the lowest one on the table.

Why Insurers Benefit When Plaintiffs Are Broke

Insurers know this story well. In fact, they often bank on it.

They delay.
They drag out discovery.
They offer just enough to tempt someone who’s desperate.

And when they sense financial distress—gaps in treatment, missed appointments, a plaintiff who’s ghosting their lawyer—they know their lowball offer is more likely to be accepted.

You may have spent months building the case.
But all it takes is a utility shutoff notice or a late rent letter for your client to say:
“Just settle it. I need the money.”

What Legal Funding Can Really Do

This is where legal funding becomes more than a convenience—it becomes a strategy.

Pre-settlement funding gives plaintiffs access to a portion of their expected settlement in advance. It’s not a loan. It’s non-recourse, meaning if the case doesn’t resolve in their favor, they owe nothing.

Used responsibly, it gives your client time—and time, in this business, equals leverage.

Funding can help clients:

  • Stay current on rent, utilities, and day-to-day costs

  • Avoid falling into debt, eviction, or further medical hardship

  • Continue recommended treatment (which often strengthens the case)

  • Wait for a full-value offer rather than accepting an early, undervalued one

Even surgical funding options exist, helping uninsured or underinsured clients get the procedures they need without delay—something that strengthens both recovery and claim value.

Real Talk: What You See on Your Desk vs. What They See at Home

On paper, the case might look airtight.

  • Solid liability

  • Strong medical records

  • Consistent treatment

But if your client is:

  • Behind on rent

  • Sleeping on a friend’s couch

  • Fielding collection calls for unpaid hospital bills

Then you’re not just fighting for a verdict—you’re fighting their instinct to make the financial pain stop now.

That’s not about legal acumen. That’s about survival.

Legal funding doesn’t solve everything, but it does give plaintiffs the financial breathing room to make legal decisions from a place of strength—not fear.

When to Talk About Funding? Before It’s Desperate.

The best time to introduce the concept of funding is early. Not when the client is in panic mode, but when you're first outlining the legal process.

Setting expectations that support may be available if things get tough later makes the conversation easier when it matters.

You might say:

“If at any point during the case you’re feeling financial pressure—can’t work, bills are stacking up—let me know. There are funding options available that might help you stay on track while we build your case.”

 

It’s proactive. It’s empathetic. And it shows you’re planning for the whole client—not just the claim.

The Attorney’s Advantage: More Time, Less Pressure

When your client is funded and financially stable:

  • You get fewer urgent calls asking to settle

  • You avoid gaps in treatment that undermine case value

  • You preserve your ability to negotiate from a position of strength

In other words, you stay in control of the timeline.
And that often means better results—for your client and your firm.

Funding Isn’t a Shortcut. It’s a Safety Net.

There’s still hesitation in some firms about recommending funding. That’s fair. Not all funding providers are created equal.

But when you work with a partner that:

  • Offers transparent terms

  • Prioritizes speed and support

  • Respects your attorney-client relationship

…it becomes a tool to protect—not interfere with—your strategy.

What to Look for in a Funding Partner

If you're considering referring a client for pre-settlement or surgical funding, make sure the provider:

  • Has a fast and clear approval process

  • Offers non-recourse terms (no win = no repayment)

  • Provides support tailored to plaintiff-side personal injury

  • Assigns dedicated reps who understand your firm’s preferences

Golden Pear is one such provider—trusted by thousands of attorneys and plaintiffs nationwide. With fast approvals, algorithmic underwriting, and flexible funding solutions, firms use Golden Pear to help clients stay financially stable while they pursue the justice they deserve.

Final Thought: Time Builds Value—Let’s Make Sure Your Clients Can Afford It

Every attorney has had the heartbreaking conversation:
A client settles for far less than their case is worth—because life outside the courtroom simply couldn’t wait.

But it doesn’t have to be that way.

Funding isn’t just about dollars. It’s about dignity, time, and stability.
When your client isn’t racing against the clock—or their bills—you get to do your job at the highest level.

Let them hold out for what they’re truly owed.

📩 Want to explore how funding can support your caseload?

Learn more about Golden Pear’s pre-settlement, surgical, and medical access funding at goldenpearfunding.com, or connect with your dedicated account manager.