Selling Future Annuity Payments: What Do People Do with the Money?
Selling future annuity payments can be a way of funding many of life’s expenses. Structured settlements are put in place to protect the financial security and well being of injured people and their loved ones. But when their life changes in such a way that their structured settlement can’t meet all their needs, they may face the decision to sell payments.
Strategic Capital wants to be there to provide options and support. But what do most people due when they sell future annuity payments?
Reasons for Selling Structured Settlement Payments
As a leading company in the factoring industry, our customer service team talks with people every day who are wrestling with the decision to sell their future annuity payments. We ask our clients about the reasons they have for selling settlement payments so we can understand their unique situations. This is what we’ve learned:
- Many people are paying off credit cards and other high interest debts so they can reduce their interest costs and their stress. Thirty-two percent of our customers use their lump sum payments to pay off high interest debts.
- Some people are paying for homes and housing so their family will be safe and secure. Twenty-two percent of our customers are using their proceeds to buy houses, stop foreclosures, or make renovations.
- Many people are paying for medical expenses so they or their family can be well. Fourteen percent of our customers use their lump sums to pay for medical expenses.
- Some people are paying for education and tuition so they and their children will have a brighter future. Nine percent of our customers are using their structured settlements to pay for education expenses.
We’re happy to help our clients make wise and well-informed decisions of whether or not to sell future annuity payments for important reasons like these. When the reasons are not so good, often we recommend that a person not sell their settlement, or that they more seriously consider whether selling is truly in their best financial interests, both for now and the future.
Understanding what a Settlement is Not
At Strategic Capital, we explain to clients that a structured settlement is not like a simple savings account – it is not something that should be dipped into lightly. We remind them that their structured settlement was originally set up to secure their financial future, and that they should only sell those payments if they have a true, immediate financial need, and if they are certain that it will not hurt their ability to meet life’s basic needs (shelter, safety, food) in the future.
Strategic Capital – Help when it Matters
When we work with clients who are facing tough choices about selling their settlements we treat then with respect and compassion, because that’s how we’d like to be treated. As we help them understand their options, we stress financial prudence and common sense. We’re in business to help people, not take advantage of them, so we even tell them when selling some or all of their payments isn’t in their best interest. Our clients are working to make their lives better and we’re proud to be able to help them.
If you are considering selling future annuity payments call toll free: 1-866-256-0088