Money makes the world go round. If you are one of the lucky to have received an annuity as a result of a lawsuit or a lottery winning, accepting payments in smaller chunks may prevent the cash from burning a hole in your pocket. However, everyone is different and if a lump sum is calling your name, you can sell your structured settlements to a company that will pay you all at once, instead of waiting for payments to come in slowly overtime.
Why you might need a lump sum
Debt: paying off the Monster that is Eating America Alive
Debt is everywhere you look. As a whole, American consumers owe $11.91 trillion in debt, with 3,422 bankruptcy fillings everyday in February 2015. The average American household carries $129,579 in total debt and many consumers greatly underestimate how much debt they actually have. Cash from your structured settlement agreement can give you the option to chip away at the many facets of debt out there.
- Student loan debt has steadily climbed from $1.21 trillion to $1.3 trillion between 2014 and 2015. Don’t resent your higher education and pay off that bill now!
Outstanding auto loan debt is also growing, from $866.44 billion to $943.76 billion between 2014 to 2015. A lump sum from your annuity settlement can erase this headache, and you may even be able to buy a brand new luxury car you weren’t able to afford before!
Credit card debt is running rampant across the United States, with the average consumer owning 3.5 credit cards, owing $3,761 in revolving credit to lenders, and each household possesses 13 payment cards with a total of $15,355 in total credit card debt. A structured settlement payment can reduce this debt and make you breathe easy again.
Paying off Medical Bills
Approximately 20% of credit reports are hurt by overdue medical bills. The Rutter Group insurance industry statistics show that 25 to 30% of accident victims use all of the funds from their judgments within two months of recovery, and 90% of victims drain their settlement within five years. The ability to sell your structured settlements for a large lump sum can reduce your debt and help you focus on recovery.
Purchasing a Home
The average cost of a new home in 2010 was $272,000, a cost many Americans cannot pay on their own. Most mortgage lenders require a cash down payment of 5, 10, or 20% of the sale price, an easy thing to do with the cash sum of your settlement, while making an investment in your future home.
Starting a Business
To sell your structured settlements can lead you down a path of entrepreneurial success, giving you the opportunity to pay the approximate $30,000 needed to start a business, as reported by the Kauffmann Foundation. It is about time your creative idea comes to light!
Overall, cash for annuity can provide an array of lifestyle changes, but just make sure to act responsibly with your new found financial independence!