If you are the recipient of a major settlement or lottery winnings, chances are that you will be offered two choices: you’ll either receive your money in the form of a lump sum, or in the form of an annuity. A lump sum is exactly what it sounds like — a large amount of money received at once. An annuity, on the other hand, turns that lump sum into payments — the case of lottery winnings, you will have lottery payments, and in the case of settlements, you will receive structured settlement payments. Usually, there are a varied types of annuities, with different sets of payout periods. However, the most common payout periods include one that distributes the money in a 25-year payment period, and one that distributes the money in yearly payments until death. Many find themselves frustrated with the fact that an annuity keeps them from having full control of their money. Furthermore, there is a decent chance that you will want a larger sum at some point in your life — perhaps because you’ve found yourself in debt. But the fact is that you don’t have to have a particular reason to get cash for structured settlement payments and lottery payments. You simply have to want it! Here are some of the reasons why you might want to choose a lump sum, and get cash for structured settlement payments and lottery annuities.
1. Control Over Your Money
Many want to get cash for structured settlement payments and lottery annuities simply because they find themselves uncomfortable with the way annuities work. Yearly payments can be frustrated, and certainly can make working out your taxes confusing. Many also find that they don’t feel that they’re getting their money’s worth from annuities. Not only is the money broken up into payments — but an initial amount is usually taken by the state, and your taxes change with you changing tax bracket. It’s just not for everyone, and the one thing you should have control over in life is your money. If an annuity is making you uncomfortable, you should not hesitate to sell it. Considering getting cash for structured settlement payments and lottery payments your “get out of jail” card. This way, you aren’t cornered into your initial choice of an annuity.
2. Student Loan Debt
Student loan debt is a major issue in America, with the outstanding student loan debt jumping from $1.21 trillion to $1.3t trillion from 2014 to 2015. The fact is that more and more, people are finding that they need degrees to get high-paying jobs. College isn’t an option, but a must. At the same time, it remains as expensive as ever, and difficult to pay for at all. Many people find themselves wanting to pay off their outstanding student loan debt as quickly as possible. If you’ve received lottery winnings or a structured settlement, the best way to pay off your student loan quickly and efficiently is to sell those payments for a lump sum. That way, you can put your student debt aside, not having to worry about it for the rest of your days!
3. Credit Card Debt
Unfortunately, credit card debt is perhaps even more of a problem than student loan debt, for a number of reasons. Many don’t know where to move with their credit car debt, simply because they’re too ashamed to talk about it — in fact, 70% of Americans report a greater stigma around credit card debt than any other kind of debt. Credit card debt isn’t just debt, though — it affects your ability to take out loans in the future, and to be approved for any number of financial opportunities. Paying off as much of your debt as possible, as quickly as possible, is a good idea. And that can only be accomplished you should get a lump sum rather than an annuity.
The choice is yours — but the fact is that you need to know that this is an option for you.