If you are wondering, “Can I sell my structured settlement payments” the answer is yes, but there is a lot more to it than this. You have to ask how much you can sell, when you can sell and if selling is right for you.
One partial myth that you will read in the world of structured settlement transfers is that you cannot sell your settlement payments if your paperwork says that you cannot. But in many cases this isn’t really true – federal law gives you the right to sell your structured settlement much of the time, if you have a true financial need.
However, just because you can do a thing does not necessarily mean that you should do that thing. There is a lot to consider before you decide to sell your structured settlement.
Well, one famous financial expert is money guru Suze Orman. For twenty years Suze has educated and advised people on money matters from debt pay off to retirement, stock investing to insurance, and everything in between. So, with structured settlements Suze Orman has a few things to say…
In a posting on famed talk-show host Oprah’s website, Suze said that for too many people selling their structured settlement seems an easy way out and is just putting a Band-Aid on a bigger problem. Suze, likening structured settlement sales to taking money out of one’s 401k, said that too often people use these tools just to shift money around without making any real change in their financial life.
This is exactly how we feel at Strategic Capital. For a structured settlement sale to make good sense you must change your money management habits.
Change your habits and a sale might be the perfect choice for you.
One prominent legal website, Expert Law, admits that selling a structured settlement is one viable way to get cash when you need it. They simply caution that you should get multiple quotes to ensure your best deal. And, that you should work with a company whom you trust and who has a solid financial history and good customer service.
One person wrote to Suze asking her advice about her husband selling a settlement just so they could pay off bills. The caller said they had $110,000 in a settlement, but a sale would net them just $17,500. They had $30,000 worth of bills to pay off. Suze, smartly, told the writer no way – to sell would cost far too much money and would not even net them the money that they needed to be debt free. Suze was right here – this situation was easy, there is no way that the writer should sell. But not structured settlement transfers are this cut and dry.
When it comes to structured settlements, Suze Orman cautions that before you sell your payments you should rethink your current situation, considering questions such as:
- Can I afford this home?
- Should I downsize?
- Are there changes we could make to lower our need for money?
Suze also says that you should avoid just moving the debt around. Taking money out of a settlement or 401k investment plan to pay off credit cards is just geography. Consider:
- Can I get the money another way?
- Will this sale fix my situation into the future or just put a bandage on the problem for now?
Finally, Suze suggests that you should change your attitude towards spending money. For some people simply changing their spending habits can make a bit impact on the bottom line. Ask yourself:
- Do I really need to buy that?
- Can I pay more than the minimum payments so that I can get out of debt faster?
- If I sell my settlement to pay off credit cards can I avoid charging them up again?
The bottom line is that with structured settlements Suze Orman recommends against selling your payments when that is simply a short term solution to a long term problem. However, at Strategic Capital we know that when done as part of a well thought out, viable plan, selling your structured settlement payments can be a logical decision. If you wonder, “Can I sell my structured settlement payments” the answer is yes – call Strategic Capital to discuss your situation today.