What to Know About Selling Your Lottery Winnings
In America, we dream big. That’s why millions of people fork over their dollar and cents to buy lottery tickets on a daily basis — and it’s also why the Powerball reached such monumental heights earlier this year.
But what happens when you win the lottery? Many people fail to realize is that most lottery winnings are not paid in full — rather, they are paid over the course of many years. For example, the Mega Millions lottery game is typically paid out first in one large payment, and is then followed by yearly payments over the course of 29 years. As each year passes, the payment grows by 5% from the one before it.
While this process benefits many individuals who are looking to preserve their winnings, it is not exactly a positive financial solution for everyone. Here are some insider tips for selling lottery payments that might work for you:
On Selling Your Annuity
Many people want to know: “Can I sell my annuity?” And largely, the answer is yes. In fact, many people sell their lottery annuity payments in order to take care of preexisting financial issues. The first thing you must do is determine why exactly you want to sell it. Then, you have to have your reasonings and sale approved by a judge.
What are commonly sanctioned reasons for selling lottery annuity payments?
Getting Out of Bankruptcy
Did you know that 3,422 people applied for bankruptcy on a daily basis in 2014? Simultaneously, 64 million citizens of the United States have trouble paying their bills each month. Lottery payments would be a quick and easy way to get out of debt and avoid bankruptcy.
Pay Outstanding Medical Bills
Did you know that almost 50% of all individuals file bankruptcy due to medical debt? This sad and shocking statistics is very telling and says that majority of U.S. citizens are only one medical problem away from bankruptcy. Selling your annuity is a quick and easy way to ease the strain of medical bills.
What would you do with your lottery winnings? Would you sell your payments or take it in yearly supplements? Tell us in the comments below!