It’s late at night and you’re watching TV. On comes a funny, catchy ad, promising you “Cash NOW!” for your structured settlement. They’ll beat any offer! Get a large lump sum! No hidden fees! So you start thinking about all the things you could do with a big wad of cash now, rather than having to wait months or years for the whole thing.
Always remember that companies that purchase structured settlements are in business to make a profit. This doesn’t mean that buying (or selling) a structured settlement is illegal, but it does mean that the company doesn’t make money unless it can convince you to sell. So, take all those alluring promises with a grain of salt.
Cash…Later. You may be desperate for cash if you’re facing foreclosure, medical bills, or mounting credit card debt. But no matter how willing you are to sign your settlement away, you’ll have to wait for cash. Why? Because every state has a process that must be followed. Completing your sale will take at least 45-60 days, and could take longer, depending on where you live.
You Can Beat That Offer With a Stick. Even if a structured settlement buying company promises to give you more cash than anyone else, find out for yourself. Always shop your settlement around to several companies. A site like QMAP gives you the ability to do this quickly. And no matter how persuasive a company might be, never reveal the offers you’re getting elsewhere – just ask what their best deal is. Also know that many companies will float a low offer first to see if you’ll bite – if you wait, you might just get a better one. And also beware offers that are much higher than the others you’re getting – some companies dangle a high offer to lure you in, only to drop it later.
Not-so-large Lump Sum. All buyers of structured settlements use a discount rate to reduce your total stream of payments to the amount they’ll offer you. If you want quick cash, the discount rate is the “price” you’ll pay to get it. The offer won’t be the full amount of your personal injury award, and it won’t even be equal to all the payments you’re scheduled to get. This discount rate can often be in the double digits. If you wouldn’t be willing to pay double-digit interest on a loan, would you be willing to “pay” it as part of a structured settlement sale?
Hide-and-Seek Fees. A company may promise “no hidden fees,” but don’t take their word for it. Always look over any offers, contracts, agreements, or other documents you get very carefully. Look out for any fee, whether it’s for “processing,” “handling,” “filing,” or anything else. Any fee will come out of your settlement sale.
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.
