Each year, over $1.8 billion worth of structured settlements are awarded in the United States. These settlements are usually given to people who have been injured through no fault of their own. The guilty party in these cases use structured settlements as a way to make paying victims easier on their bank account.
If you have recently been awarded a structured settlement, you have to figure out whether you want to wait for the payments to roll in or sell it for a lump sum. Getting cash for a structured settlement can be beneficial and here are some reasons why.
Avoid Waiting For the Money You’re Owed
One of the biggest complaints most people have about structured settlements is waiting. These settlements are designed to provide a person with smaller monthly or quarterly payments. While this may be acceptable for people who already have a steady stream of income, some people want the money they are owed right away.
If you were involved in an accident that has affected your ability to work, getting cash for your structured settlement is a good idea. With this influx of capital, you can avoid getting in a financial bind following an accident.
Before you sell your structured settlement for cash, take some time to weigh all of your options. Getting a feel for what various companies will offer you for your settlement is crucial. If you want to find out more about the benefits of selling your structured settlement, check out the information here.
The Drawbacks of Selling Your Structured Settlement
While there are tons of advantages that come with selling a structured settlement, there are also some drawbacks you need to be aware of. The main problem that comes with selling your structured settlement is the loss of revenue. Companies that buy these settlements will only offer you a portion of what your structured settlement is worth.
This means you will need to be comfortable with taking a bit of a financial loss. You need to decide whether the financial loss associated with getting a structured settlement is worth it or if you would rather receive payments for a few years. If you need a lump sum of cash, then selling your settlement for cash is a wise move.
Wisely Investing Cash For a Structured Settlement
If you decide to sell your structured settlement, you need to be smart with the money you receive. One of the first things you should do with this money is to pay down any high-interest debts you have outstanding.
Many people take the money from their structure settlement and purchase a home or a car. If you are unsure about how to spend your money, consulting with a financial advisor is a must. With their guidance, you can invest this money wisely.
It’s Time to Make a Decision
Now that you know more about the benefits and drawbacks of getting cash for a structured settlement, you need to make a decision. Figuring out the best move for your particular set of circumstances will not be easy.
Are you looking for more information about structured settlements? If so, check out the rest of our blogs on this subject.