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Selling Your Structured Settlement: Is Now the Best Time?

With our current economic recession lasting longer than most annalists had initially expected it too, it is becoming difficult to find anyone who isn’t concerned about their money. In these difficult times, those who are receiving monthly payments on a structured settlement are often wondering about whether they should opt to cash out now and receive a larger lump sum or if they should try to wait out this slowly recovering economy. Whether or not selling your structured settlement payments is an appropriate decision depends largely on each person’s own personal circumstances, situation, and willingness to live at a, sometimes greatly, reduced standard of living compared to what they may have been accustomed to before.

Regardless of the current economy, you must ask yourself some basic questions prior to considering the sale of your structured settlement payments. For example, do you sincerely need the lump sum now? Have you or your spouse recently lost a job and is this why you feel the need to sell? If so, can you wait things out until you or your spouse is employed again without selling your payments? Are you encountering debt problems with respect to mortgage payments, vehicle payments, utility or credit card payments that may affect your credit rating if you are unable to become current? In the event that your financial situation falls into one of these categories, choosing to cash out your structured settlement now, rather than receiving monthly payments that are inadequate under the circumstances, may be the most logical choice for you in these tough economic times. It may also help save your home from foreclosure and your car from repossession. In addition, it will allow you to avoid any of the consequences of having a default judgment filed against you for unpaid credit card bills, such as bank account freezes and wage garnishments. These types of black marks can stay on your credit rating far longer than the most pessimistic of economy annalists would predict our mild recession to last.

If, on the other hand, your financial situation is more stable, you’re current on your bills and have steady employment, opting to cash out at a rate anything even a little less than what your full structured settlement is truly worth, simply to have the extra money on hand, could be  possible but really doesn‘t make much financial sense. Even though rates are at there lowest in the history of the industry, cashing out a structured settlement means that you are cashing out each payment for a discount of their actual future value. If you are not in a position to pay your bills, the percentage may seem like a small price to pay to help you catch up and get your life back in order. Those in more stable financial situations, however, might not see as much benefit to losing even a portion of their full settlement figure when they do not truly need a lump sum immediately.

In addition, make sure you shop your payments to multiple companies or use a structured settlement sales broker to handle your shopping for you. For the small cost of using a broker you can do away with the time consuming hassle of shopping around yourself, while knowing at the same time that it’s in your broker’s best interest to get you the best deal if he has a percentage commission riding on the outcome.

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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