10 reasons to sell your structured settlement payments
There are many reasons why you may want to sell your structured settlement or annuity payments. Sometimes it’s the immediate need for cash in order to solve a financial problem. Other times it’s to address a specific want. The need to access your future cash now is a decision that shouldn’t be taken lightly.
A few of the most popular reasons people choose to sell their structured settlement payments include:
- Paying off debt: High interest debt such as credit cards can take a toll on you financially. If you’re looking to reduce or eliminate your debt and save money on interest payments, selling your future payments from a structured settlement, annuity or lottery payments for a cash lump sum might be the best option.
- Making home repairs: Your home may be your castle, but it is also an asset that needs to be maintained in order to keep its value as well as function. Although necessary, these repairs are often very expensive and contractors don’t usually offer payment plans. If you’re looking for a way to make repairs without building up debt, selling a portion of your future payments could be an option.
- Getting an education: Continuing education, whether it is a trade school or local college, can be very expensive. Tuition, books and other fees can add up quickly. By selling a future annuity payment for a cash lump sum now you can gain an education without gaining debt.
- Buying transportation: Getting to work, buying groceries, going to school or visiting friends requires reliable transportation. If you have poor credit or no credit, buying a car can be costly. By getting a lump sum payment now, you can use the cash to buy the vehicle you need without paying high interest sub-prime loan rates. Plus buying your vehicle with cash may give you better negotiating power.
- Avoiding bankruptcy: In this economy, many people have fallen on hard times. If you’re struggling to keep your home, you may want to consider using a portion of your annuity payments to make your mortgage current.
- Starting a business: Perhaps you dreamed of owning a business but raising the money to do so has been difficult. Equipment, products, fixtures and advertising are necessary expenses but banks don’t tend to loan money without a proven track record. Selling an annuity payment may be the answer to your prayers.
- Paying medical or dental expenses: Many people do not have medical or dental coverage. Sometimes the coverage they have is terrible. In order to get the necessary treatment, they will use cash from their annuity to pay for their care.
- Buying a house: Many people cash in their structured settlement annuity to make a down payment on or purchase a home.
- Paying taxes: Occasionally, you don’t have the money to pay your property, business or income taxes. Instead of having a lien or garnishment, many people will chose to sell a portion of their annuity payments for a cash lump sum and pay off their debts in full.
- Reallocating assets: Financial situations and needs change. Perhaps you inherited an annuity but you would prefer to have the cash to use for your expenses or to fix up your home. By selling your annuity, you can get your money now, instead of waiting for it to trickle in.
