Is getting cash for structured settlement payments the best decision for you? Well, every day we all make the best decisions that we can with the information that we have. Often, we are fortunate and we make great decisions. Why sell your structured settlement? Because it seems like a smart idea, of course. In this page we talk about three people who made the best decision, to sell, and we consider what you can learn to apply to your situation and make the best decision for you.
Mary received a settlement a few years ago. Before the settlement she had accumulated about as much credit card debt as she had earned income in a year. Now, Mary is catching up and doing well, but she can’t seem to get those credit cards paid off; she just owes too much. So, Mary sold about half her remaining payments and paid off her cards.
What can we learn from Mary’s story? We can learn that sometimes paying off credit cards by selling your settlement can do two things: first, it can put you in a stronger financial position; second, it can provide peace of mind. Both are important.
Suze Orman, financial advisor to the country, says people first, then money, then things. Why sell your structured settlement? So you can put yourself first and relieve your financial stress.
Jason received a settlement just a year ago, but now he is healthy and back on the job. In fact, Jason just opened his own business. It is going well, but he knows that if he invests in the business, for example buying a new truck, he can get more clients and earn more money. Jason gets cash for a structured settlement payment to buy a new work truck.
This tactic can work for you if you own a business or are training for a new career. Investing in yourself is almost always a sure thing – no one knows you as well as you do! If you know that you can make it, you have the drive, the talent and the knowledge, then take the leap and invest in yourself.
Terry had a tough last couple of years. His injuries lost him his job and he didn’t work for two years. He scraped up enough to keep the house a float for a while, but now he is so far behind that they are foreclosing. However, Terry has enough money in his structured settlement that he could sell it and pay off the house in full.
So, if Terry can pay off the house they can live on his wife’s income.If you are in a situation where you know that you can afford the incidentals of the house then selling your payments to buy a new house or save your home from foreclosure could be a great solution to a family problem.
If you think, “I want to sell my structured settlement payment” just be sure to take the time to think it through carefully. Strategic Capital recently asked a number of attorneys who specialize in structured settlements cash now transactions what good and bad reasons to sell are. One said that paying off credit card debt was a bad reason; another said this was a good reason. So again, it depends on your personal situation.
When asked about the good and bad reasons to sell, Matt Bracy, J.D., a lawyer specializing in structured settlement and sales, said:
“Ultimately, reasons for selling payments are as varied and complicated as people themselves. For example, you could say it is a “bad” reason to sell payments so you can take a vacation. What if the seller is dying, and this is an effort to spend good time with his family? Imagine a seller’s reason to sell is that she just doesn’t want to get the checks on a monthly basis anymore. At first blush that may seem like a financially irresponsible position. What if you learned that each month she gets the checks, she is reminded of the injury that she suffered, and it has a detrimental impact on her psychological wellbeing? The converse can also be true. What if a seller wants to sell payments in order to pay off debt? That is a common reason for selling, and generally a pretty good one. But what if the payments he is selling would leave him with no way to support himself on a monthly basis, even after elimination of the debt?”
In the end, while Strategic Capital can help inform you, the answer to “do I want to sell my structured settlement payment” is yours, but this is all good food for thought.