News and Tips on structured settlement transfers.

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Before You Sell Your Structured Settlement, Read This!

If you’re desperate for cash, the ads promising quick cash for your structured settlement can be really tempting.  But keep a few things in mind before you decide to go ahead.

Think of What You’re Giving Up

All structured settlement factoring companies use a discount rate to figure up what they will pay you for your settlement.  That means that the lump sum you will get in exchange for the payment stream you’re selling will be less than the total amount of the payments – sometimes a lot less.  The discount rate ensures that the structured settlement buyer’s costs will be covered, and also that he will make a profit on the purchase of your settlement.

What Will You Do When It’s Gone?

Once you sell your structured settlement, it’s gone.  Structured settlements are intended to provide for your living and medical expenses, so without it, how will you cover your needs?  If you have no other income and are not able to work, seriously reconsider how you will survive without your structured settlement payments.

Do You Really Need To Sell?

It’s easy to become convinced that you are desperate for cash when a large expense pops up.  But really consider what those expenses are.  Is there some other way to get what you need, or pay the bills?  If it’s a debt you wish to pay, try restructuring it or working out a payment plan.  If it’s something you think you need to buy, reconsider whether you really need that new car or vacation.  Even if you really need money, if selling your structured settlement won’t take care of the need once and for all (for example, if it’s only enough to pay some of your debts), don’t bother – you’ll be no better off and your structured settlement will be gone.

Not As Easy As You Think

Beware structured settlement buyers who make the process sound fast and easy.  Even if everything goes smoothly, you won’t complete your sell in less than 30-45 days.  If you need cash faster than that, you are out of luck – no matter what the settlement buyer promises you.

The most important thing to remember is that a structured settlement is intended to protect and provide for you.  Structured settlement buyers are in business to make a profit, not to help you.  Before you sell, really give some hard thought to what your life will be like without the settlement payments.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.

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