When you sell your structured settlement, you are essentially selling your future payments in exchange for a lump sum of cash. This can be a great way to get the money you need now, but it’s essential to understand the implications before making a decision.
Structured settlements entail the periodic payment of the settlement amount awarded in a lawsuit. The payments are usually made over time and typically are paid out by way of an annuity. You can sell your structured settlement to receive a lump sum of cash now, but it is crucial to understand the implications before making a decision and will require court approval.
There are many reasons why people choose to sell their structured settlements, but some of the most common include:
1-To pay off debt
It can be difficult to stay on top of debts when you have them. If you’re struggling to make keep up with your bills, selling your structured settlement can give you the breathing room you need to get back on track.
2-To cover unexpected expenses
Unexpected large expenses can pop up anytime and can be challenging to handle if you’re not prepared. If you find yourself in a tight spot, selling your structured settlement can give you the financial cushion you need to get through it.
3-To make a significant purchase
If you’re looking to buy a home, a car, or anything else that requires a large amount of money, selling your structured settlement can give you the funds you need rather than taking out a loan with interest.
4-To invest in your future
If you’re looking to further your education or start a business, selling your structured settlement can give you the money you need to start.
5-To provide for your family
If you have a family, it’s essential to ensure they’re taken care of. Selling your structured settlement can give you peace of mind knowing that you have the cashto put towards whatever need has come about.
Of course, this is not an exhaustive list, and there areother reasons people choose to sell their structured settlements. If you’re considering selling your settlement, you should speak with a professional financial advisor to help figure out if it’s the right decision.
With the intention to sell your settlement, you must know the companies that buy structured settlements. It helps to have an idea about the different types of companies, so you can be sure to get the best deal possible. Two of the different types of companies are:
Insurance companies are the original payers of your structured settlement, so they may be willing to repurchase it from you at a discount.
The second type is factoring companies. These companies specialize in buying structured settlements, among other things, and may be able to give you a better deal than an insurance company.
No matter your reasons for selling your structured settlement, it’s essential to understand the process and the implications before deciding. Contact us today to learn more if you’re considering selling your structured settlement.