Structured settlement factoring companies – the buyers who take your payment stream in exchange for a lump sum – are in business to make money. They are not in existence to help you, and they are not on your side. This doesn’t mean they are evil; it simply means they are in business. As a result, it’s important that you look out for your best interests before you agree to sell your structured settlement.
First, if you can, tell a trusted friend or a financial advisor that you are considering selling your structured settlement. Another person may be able to give you objective suggestions for other ways that you can get the cash you need, or meet your financial obligations, without selling. A financial advisor may also be able to help you get alternative financing, or work with you to restructure your debts to something more manageable. Even though financial advisors charge a fee, it may be well worth it, considering how much you will give up if you sell your structured settlement.
Watch Out For Pressure Tactics
While selling a structured settlement is new for you, it is just another day for the structured settlement buyer. They know the hopes and fears of structured settlement holders, and may try to play on your emotions to get you to sign on for a deal in a hurry, or agree to a deal that is not the best for you. Avoid this kind of pressure. If possible, get a friend to be with you whenever you are dealing with the structured settlement companies to give you a second opinion, and get you to hold off before signing in a hurry. If you don’t have anyone who can serve in this role, promise to wait at least 24 hours before making a decision – write it down and post it prominently if you need to. Tell the company that you have a financial advisor who must look over every aspect of the deal, even if you don’t really have such a person. A company may try to convince you that the deal will be off the table if you wait; this is even a greater red flag to back away.
Get Legal Advice
Most states require structured settlement holders to get legal advice before selling their structured settlements. Choose an attorney who is independent (avoid any attorney who is “preferred” or “recommended” by the structured settlement buyer) and who has experience with structured settlement factoring transactions. Listen carefully to his or her advice. If s/he tells you that selling is a bad idea, reconsider your decision to sell.
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.