You may have been debating for some time when, or whether, to cash out your structured settlement. If you want to go for it, now could be the best time to do so, and here’s why.
Low Interest Rates. You may be wondering what low interest rates have to do with you and your structured settlement. Well, nothing directly. But, the companies that buy structured settlement love the current low interest rate environment, because it allows them to secure the financing they need very cheaply. Interest rates are at historic lows, and won’t stay there forever. Once they start creeping up, structured settlement buyers will need to make up for the higher interest cost somehow, and a higher discount rate to you – the money you give up so you can get a lump sum now – will eat into more of your settlement.
While you may decide that you don’t care, that you’ll accept a higher discount rate as the cost of doing business, the judge reviewing your case might not be so inclined. If a judge reviews your case and decides that a too-high discount rate is not in your best interest, he might turn down the deal.
Regulatory Environment. There always seems to be talk of revamping the legal process for structured settlements, but do an Internet search on this topic and you’ll find more chatter than ever. 2010 was a great year for structured settlement companies, and, as a result, they’ve drawn increased scrutiny for everything from business practices to the discount rate charged. Should there be a groundswell of interest in changing the whole structured settlement process, you may find yourself with fewer options than before.
The Perfect Storm. As the world climbs out of recession, consumer spending is up, and there’s plenty of talk about the “I” word: inflation. Even if inflation doesn’t grow out of control, prices for everything seem to be rising, so structured settlement buyers will have to pay more for office help, cash flow, legal assistance, and everything else. Sure, the buyers can raise their discount rates to make up for it, but if the deal takes too much out of your settlement, the courts can start rejecting the deals. Faced with the inability to make profits to sustain their businesses, many structured settlement buyers may choose to – or be forced to – get out of the structured settlement business. This could result in fewer choices for you.
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.
