You've heard the advertisements – if you're receiving monthly structured payments for a lawsuit settlement, you can sell those structured settlements for a lump sum of cash that will help you pay bills or make purchases without waiting. If you have a structured settlement, maybe you've thought about doing this yourself, but worried about the possible drawbacks of selling your structured settlement. What if you need cash, but also want to continue receiving monthly payments? Will giving up your structured settlement payments threaten your financial stability? Will your structured settlement lose a lot of its value when you sell it? Here are the answers to a few of your most important concerns about structured settlement payouts.
You Can Get A Lump Sum And Monthly Payments
One of the biggest misconceptions about structured settlement payouts is that it must be all or nothing – that you can either sell your structured settlement for a lump sum, or you can continue to receive monthly payments. However, that's just not true.
You can choose to sell just a portion of your structured settlement, which means that you'll have cash now and the stability of monthly payments in the future. In fact, this is a smart financial decision for people who just need to pay off some bills or debts. You can settle outstanding debts or pay down bills so that your monthly living expenses are more reasonable. Then you'll continue receiving a monthly payment to help pay those living expenses. You'll be able to save more money or treat yourself more often, because you won't have those outstanding bills dragging you down.
Selling Off A Structured Settlement Won't Compromise Your Security
Even if you do sell off the whole settlement, there's no reason to believe that doing so will prevent you from being financially secure in the future. Just as with monthly payments, the security that you gain from a lump sum all depends on how you use the money. In some cases, having a large sum of money to work with all at once could make you more secure.
For example, if you use the money to pay off your mortgage, you're likely making a sound investment in your future. You've ensured that you have a stable place to live that can't be taken away from you, and you can focus on using your regular income to make improvements to your property, thereby increasing its value. Using the lump sum to pay for college or start your own business can also be a sound investment – you're increasing your own future earning potential. The trick is to have a plan in mind for your lump sum that will strengthen your stability instead of weakening it. Before you even begin looking into selling your structured settlement, you should work on coming up with a plan for your money that will help secure your financial future.
You Won't Lose As Much Value As You Think
Of course, you won't be able to sell your structured settlement for its full value. In exchange for having the money available to you immediately, you'll have to agree to give some of it up to the company that provides the lump sum payment – that's how they make a profit. But the legal process designed for selling a structured settlement is designed specifically to protect you from paying unreasonable fees for access to your money.
In order to sell a structured settlement, you have to get court approval for the sale. The most common reason for judges to deny a structures settlement sale is a fee that's unreasonably high. Judges can also deny sales when they don't think that it's in the best interest of the recipient, especially if the recipient is considered vulnerable, such as a minor or a senior citizen. Reputable companies that handle structured settlements will abide by these court decisions – be wary of a company that promises a structured settlement with no court approval needed.
The amount of money that you can receive by selling your structured settlement varies depending on the company you choose, among other factors. You can get a ballpark idea of how much your structured settlement is worth by using an online calculator, as well as by shopping around for quotes from different companies. Could selling all or part of your structures settlement improve your life and secure your financial future? You owe it to yourself to find out. Get more information at sites like http://www.mylumpsum.com.
Share21 May 2015
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