Everyone goes through financial problems at least once in their lives. You aren’t alone if you are feeling the pinch right now. Often, when you are desperate for money, you will make a less than thought out decision which can significantly hamper your future for some temporary relief right now. It could be a loan that you don’t need from companies that are less than upfront with you.
During the recession, there were a record number of annuities, lottery payoffs, structured settlements, and other long-term payments which were sold off. If you are still cash poor, there are options for you.
Whether you want to sell structured settlement out of an immediate need for money or you want to have some cash available to fund your new business idea, structured settlements can represent a significant sum of money that you can withdraw. While most people are content with a steady source of tax-free income for the rest of their lives, some people want that huge lump sum check and the gratification that comes with it. It is very tempting to sell your future payments and receive all your money at once. While there are logical reasons and benefits from not selling your payments, there are many valid reasons to do so too.
Either from circumstance or opportunity, people sell their payments. And while the reasons for selling are individualistic and unique to you, here are some common reasons why people choose to sell their structured settlements:
- A great reason for selling your structured settlement payments is when you see a business opportunity. Got an innovative new start-up idea? Your ideas could be funded by the capital you gain from selling structured settlement payments. Investments such as these, if executed correctly, might lead to payoffs that are much bigger than what you were getting from your annuity.
- If you’re one of the people who purchased lottery tickets in groups and managed to win, a small annual payment that gets divided among several people does not seem as appealing as cash divided equally. In situations like these, selling it makes a lot more sense than hanging on to a small yearly dividend that gets further divided among you and your friends.
- Some of the more charitable souls desire to make a substantial contribution to charity, so they sell their structured settlements to receive a lump sum that allows them to leave a positive mark in the world.
- One of the most common reasons is to pay off existing debts. If you’re stuck in debt and want to climb out of the pit, selling your payments becomes a whole lot more enticing.
- Everybody knows college is super expensive. But they also know that it’s one of the soundest investments you can make for your future. Returning to college is also another common reason why people choose to cash in their structured settlements.
- Life is unpredictable. You never know what kind of problems are going to come knocking at your door next. Emergencies can happen to anyone and at any time, whether they be medical or financial. In situations such as these, selling your future payments might be a better option than opting to take a loan.
- Purchasing real estate is another reason for withdrawing that lump sum. Some smart souls choose to buy a rental property from the money they receive from the sale of their structured settlements. These properties could end up bringing a rental payment much larger than their previous payments.
- Some cases look at the inheritance of annuities. A person who inherited such structured settlements might want to get all their cash up front instead of receiving small amounts of yearly payments.
- Buyer’s remorse. A person who chose structured payments over a lump sum cash out from reasons that may have seemed logical back then might later realize that he made a mistake and wanted the lump sum option instead. They then opt to sell it to finally receive all their money at once.
When you are ready to sell structured settlement payments, our expert reviews can recommend the perfect company that can meet your current needs. Every situation is different. Therefore, every solution is different. We can match you with the right company. It’s what we do.