If you’re receiving annuity payments due to a structured settlements, then you’re aware of both their pros and cons. On the one hand, it’s good to be receiving regular payments that you can rely on. On the other, it can be frustrating to be owed a settlement that you don’t access to. There are times when you could use a lump sum instead of smaller regular payments. Here are a few reasons you might want to contact a structured settlement financing company.
1. Pay off Debt
If you have a lot of debt, then it may not make sense to receive your settlement through annuity payments. If you have enough debt with high interest rates, then the cost of structured settlement financing may well be less in the long run than the expenses of paying the interest on your credit cards. If that’s the case, you should definitely consider selling your structured settlement.
2. Buy a House
If you’re able to buy a house, not only could you improve your standard of living, but you’re securing your future finances. Again, depending on where you live and the size of your settlement, it might make more long term economic sense to receive in a lump sum so you can purchase that new house.
3. Paying Tuition
If you or a loved one are preparing to go to college, that’s not the kind of thing you can wait on. Putting money away with each annuity payment won’t help because the education and degree will only benefit you if you pay for tuition now, not in 20 years. While you could get a student loan, that’s yet another debt that you or a young person shouldn’t have to live with for years to come.
4. Starting a Business
If you have a passion or a great idea that you want to take advantage of, why wait? By receiving your structured settlement in a lump sum, you can get to work on your business idea right away. If you’re successful, of course, you’ll make far more money that you will have paid through settlement financing.
5. Paying for Medical Expenses
Medical expenses might be even worse than other kinds of debt. Not only can you be hounded by a collection agency, but it might effect your ability to get the medical treatment you need.
There are some times when you’re simply better off obtaining a lump sum of money through structured settlement financing.