Whether you are getting insurance payments, a retirement annuity, or lottery payments, you are entitled to sell your structured settlement in order to opt to get a lump sum of the money that you are entitled to. Only you can decide what the best decision is for your financial situation by assessing your needs. However, here are four situations where selling your Structured settlement makes sense.
You Want to Start a Business
If you want to acquire or start a small business then selling your structure settlement may help. Remember that selling your structured annuity in order to invest in your future is considered a valid reason to do so, however that investment should not be extremely risky. By selling your structured settlement to obtain the capital required to get you started in running your own business, you could potentially see a significant payoff down the road.
You Want to Pay Off Debt
Selling a structured settlement in order to pay off an existing debt is very common. If you examine your existing debts to find that the amount of interest that you are paying on your home, car, or credit cards is above what you want to pay, then selling your structured settlement may make sense for your financial situation. Selling your structured settlement in order to pay off debt is often a very financially responsible choice, as the rates of structured settlements including transactions are significantly lower than a normal credit card or loan interest rate.
You Want to Purchase Real Estate
It is a common occurrence for people to cash in their structured settlement because they want to purchase a home. Taking the full amount of money that you receive from selling your structured settlement and using it to pay for a house in order to rent it out may be a financially savvy decision, as it would bring in a rental payment, which often exceeds what you were receiving from your monthly settlement in the first place.
You Have a Financial Emergency
An emergency can happen to you at anytime, whether it is medical or a loss of a job. Selling your structured settlement in order to pay for a rainy day is often a savvier choice than obtaining a loan to cover an emergency.
Think About Long Term
If you are thinking about selling a structured settlement because you are desperate to gain some cash or want to purchase an expensive item, it is important to remember that the instant gratification that comes with getting your hands on cash may not be worth it in the long run. If you have been given a settlement because of a retirement annuity, personal injury lawsuit, or even lottery winnings then you most likely are receiving payments on a month to month basis, and will continue to receive them for plenty of years to come.
Final Thought Before you Proceed
As tempting as it can be to sell a structured settlement in order to receive all of the money you are entitled to at once, it is important to make sure this a good option for your financial health before proceeding. As much as there are some bad reasons to sell your structured settlement, there are also some valid reasons that make sense for your financial health. In fact, among the people who are receiving a structured settlement on a monthly basis, one in ten of them have reported that they would consider selling it in order to receive a lump sum for various reasons.