At the time you agreed to the structured settlement with a fixed payment stream, it may have been a good idea but things change. Maybe you are facing economic circumstances you couldn't predict or maybe you have a great opportunity that came up out of nowhere. Many individuals receiving monthly or annual payments from an insurance company decide they could really benefit from large sums of immediate cash instead of waiting years or decades for their structured settlement. While there are various reasons people have when selling their structured settlement, some of the most common goals people have when selling their structured settlement payments include:
Eliminating High Interest Debt
In essence, people regularly sell future annuity payments in order to get rid of high interest credit card debt. To evaluate if the right decision is sell your structured settlement payments to pay off debt, you have to consider such things as the interest rate on the credit card, the impact on your credit score, and, you can get cash from your annuity or settlement to pay off your debt and get a clean start today.
Save Your Home from Foreclosure or Purchase Your Dream Home
Maybe you have fallen behind on mortgage and the bank is threatening to foreclose. Maybe you just found the house of your dreams. In either case, when other options don't allow you to save your home or buy a new home, exchanging your structured payments may be the best option. While the security of having your structured settlement or annuity payments is nice, maintaining or acquiring your family's home may give you greater peace of mind.
Medical Expenses
When medical expenses are piling up and you or a family member need more money for treatment, a lump sum for your annuity payments may be the right choice. Like with any significant economic decisions, all options should be explored before making a decision to sell your structured settlement.
Improve Your Life Through Education So You Command Higher Salary in the Future
Investing in your education may be the best path to success in the future. Getting some cash now for your insurance payments may allow you the luxury to go to school full-time or alleviate concern about how you will support you and your family while you are attending school. Getting a degree without incurring large student loans is definitely one of the common reasons people sell their structured settlement payments.
Buying a Car
Relying on public transportation or family and friends to get you around town is difficult and inconvenient. Many people decide that selling some or all of their structured settlements in order to purchase an automobile so they can get to work, find a job, attend medical appointments, or other day-to-day obligations is the right choice. With an automobile comes freedom to do what you want, when you want.
General Considerations
The reasons to sell your structured settlement payments are endless and differ for every person. Indeed, many people are better off finding alternative financing for their immediate needs and not selling their annuity stream. Evaluating whether exchanging your structure settlement (either some or all of it) for a lump sum is a good decision should start with calling a reliable company and reviewing your options. In evaluating what company to go with, consider who knowledgeable the person you are talking with is, whether the Company is trying to convince you sell more of your structured settlement than you are comfortable with, and ultimately your gut whether the Company will follow through with all its commitments to you.
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