If you have a big expense coming up — a car, a wedding, or a new baby, for example — you may be looking for ways to get some extra cash. If you’re currently receiving a structured settlement, you may be able to sell some of your future payments for a lump sum of cash.
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Just as the terms and structure of your settlement payments are unique to your particular situation, the decision to sell any or all of your payments in the structured settlement secondary market is one that must be determined based upon your personal needs and circumstances. The following advantages must be painstakingly weighed against the benefits you will lose and the financial impact the sale will have on you now and in the future.
A Large Lump Sum Now
“A bird in the hand is worth two in the bush.” Access to a large sum of money now may be far more appealing than receiving small payments over a number of years. Are you trying to purchase a home and paying with cash will net a much better purchase price than securing a mortgage? Do you want to start your own business or invest in a business that you will be actively involved in? Is there a new medical advancement that will greatly benefit your health that you need funds for? Do you wish to pursue a college degree to improve your circumstances or train for a new profession? These are some examples of typically sound reasons to sell structured settlement payments to access a large lump sum.
If you’ve heard the term “structured settlement” before and you’ve always been curious about what it is, basically it’s an amount of money that’s awarded to someone who has experienced a personal injury. Only, rather than getting a large sum all at once, they are given regular tax-free payments over a certain amount of years.
The reason why some people opt to sell their structured settlement is because sometimes their monthly amount is not enough to cover a bill or expense. When that’s the case, they tend to use the following five steps to get more money from the settlement into their hands:
Do some research on structured settlements. When an individual is thinking about selling their structured settlement, the first thing that they tend to do is read as much as possible on the topic. Thankfully, there is a lot of information online that can help you to better understand the pros and cons that come with making this kind of financial decision. One of the websites that offers this kind of information is StructuredSettlement-Quotes. Go to the site and put “pros and cons when you sell structured settlements” in the search field. If you also have any additional questions, it’s always a good idea to speak with an attorney, too.