A structured settlement is the money that you are paid over time from a legal settlement. The structured settlement is paid as an annuity or a chosen amount paid yearly. Most commonly a structured settlement is what is done as opposed to other payout options like lump sum payment. There are companies who buy structured settlements so that the receiver can get a lump sum payment upfront. Here are some things to consider when getting cash for your structured settlement.
Getting Out Of Credit Card Debt
The number one benefit and reason most people cash out their structured settlement is to take the lump sum payment and put it towards paying off debt. The average person has around four credit cards and pays up to $6,500 in interest a year. Most people do not like the discomfort of being in credit card debt. When you receive cash for your settlement you are able to invest it in being debt free. The average person may argue that being debt free brings peace of mind that holds no monetary value.
Paying Off School Loans
In today’s day in age school loans can be a serious cause for stress. School loans have the potential to follow you for the rest of your life. Oftentimes school loan are handled through the Department of Education. This means that the government is able to garnish your wages to pay off your school loan. A benefit to getting cash for your structured settlement is being able to pay off your school loans using your lump sum payment.
When you cash your structured settlement and receive a lump sum payment you can take that money and invested in yourself and your future. You are in control of your investments making your possibilities endless. You can start a business buy a home or travel the world. However a lump sum payment can help to setting you up for the future. You made decide to set some aside in case of emergencies, such as unemployment, accidents, or medical bills. You may also decide to set your lump sum aside for your beneficiary or using it to put your child or family member through school. You must determine what works best for you.