Good reasons include paying off major debt (credit card or otherwise). And because a sale of a structured settlement is a permanent solution that does not require a seller to re-pay a “loan”, a sale allows a seller to end what could be a never ending revolving credit card debt cycle. For example, if one only continues to make minimum monthly payments against a credit card that debt will never be paid off but instead continue to rise indefinitely due to the compounding nature of interest rates.
Other good reasons include the down payment on the purchase of a home, and often to provide a solution to an immediate financial crisis, such as a loss of a job where a person has no savings and is unable to pay day to day living expenses and possible eviction, etc. until a new job is found.
Bad reasons are the “lure” of what appears to be “easy money” with no specific immediate and/or long term financial goals for the funds to be received from the sale.