The Benefits to Selling Structured Payments

Payout lottery winnings

Coming into a lot of money all of a sudden can change a person. They have a lot of hard decisions to make and people start to treat them differently. Because of that they can become very withdrawn and secluded if they aren’t careful. If this describes you, then the best way to deal with this is with one decision at a time. The first decision you’re going to have to make is how you want to receive your money. You could either get a structured settlement payment payment or you could sell your structured settlements for a lump sum payout.

You may be thinking, “Why should I sell my structured settlement annuity?” Well, there are pros and cons to both a structured settlement and a lump sum. The decision you make regarding this purely has to do with what you want to do with the money. If you just want to put it all into savings and not touch it the answer to the “Why sell my structured settlement annuity?” is simply, “You don’t.” However, if you are planning on paying off anything, buying something or investing in things, you might want to consider selling. Let’s look at the two options.

Why Keep My Structured Settlement Annuity As Is?
Generally speaking if you receive a pay out for something it will come in the form of monthly or yearly payments. If you decide to receive your money in this form then you may get more money in the long run. And this is because when you receive your money early, i.e., as a lump sum, you have to pay The company that is buying your payments. However, there are still benefits to selling your structured payments which we will go over later. Getting your money in increments will also allow you to not ‘spend it all in one place’ for lack of a better term. If you don’t think you can handle having so much money all of a sudden then this might be the better option for you.

Why Sell My Structured Settlement Annuity?
As mentioned, when you sell your payments, you receive a lump sum back. This is a usually quite a bit of money and there are a lot of things that you could do with it, if you really think about it. Here are a few examples:

  • Most Americans live with a lot of credit card debt or personal loans or car payments; if that’s you then getting a lump sum is a great way to get those payments off your back and get yourself out of debt. It will also help to improve your credit score.

  • Buying a house in cash is not something that a lot of people can do. But now, with your new money, this is an option if you get a lump sum. Even if you use most of your money to buy the house, you would not have a mortgage payment to keep up with, it would truly be yours.

  • Going back to college and getting a degree is now an option. Or perhaps there is a son or daughter or family member that you would like to put through college, debt free.

  • Another idea is if you want to purchase a large item like a yacht or a brand new car. These can be pricey for if you buy it outright, you’ll pay minimal interest as opposed to the amount you would pay in monthly payments.

  • If you’ve always had an itch to travel, this is your chance to see the world. There are so many wonderful and exciting places out there that your every day Joe doesn’t get to see. You could now go and even bring someone with you to enjoy the magic.

  • This one isn’t a fun type of spending but maybe your settlement came from an accident of some sort then you’ll likely have medical bills that need to be paid off. Instead of letting those sit around, earn interest, go to collections and weight heavy on you; pay them off and be doe with it.
  • Hopefully that answers, “Why sell my structured settlement annuity?” thoroughly. There is a good and bad side to doing so but it’s a good idea if you want to use the money.

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Laura

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