Published on July 27th, 2016 | by Day Trader
4 Reasons to Sell Your Structured Settlement
Do you have a structured settlement or annuity? There were nearly 35 million individual deferred annuity contracts in the United States in 2013. The total value of all of these contracts was more than $2.58 trillion. The lottery has been shown to be the most popular form of gambling in the country today. What most people do not realize is that most lotteries do not pay everything all at once. You get one decent check and then 30 more annual payments. Not everyone wants to wait that long for their lawsuit settlement or lottery winnings. It is possible to sell your structured settlement or lottery payments. You do have to find direct funding source for structured settlements. You also have to be able to show you have a good reason for wanting to sell your structured settlements.
4 Reasons People Sell Structured Settlement Payments:
1. Avoid bankruptcy.
This is one of the best reasons to find direct funding source for structured settlements and sell your annuity. A medical crisis or the unexpected loss of your income can hit you quickly. More than 60% of American bankruptcies are due to medical debt. At least 20% of all credit reports are hurt by unpaid medical bills. In February 2015, 3,422 people filed for bankruptcy every day. Many American adults say they have trouble paying their bills or have medical debt they cannot pay off. Nearly 64 million people, which is a full 35% of the population of the United States, fall into that category.
Selling your annuity can be a great way to pay off that debt and avoid filing for bankruptcy. No court in the country would deny the sale of a structured settlement if it were to pay off medical debt and avoid bankruptcy. It is one of the best reasons for wanting to get your cash from the lottery or lawsuit now.
2. Pay for someone to go to college.
Maybe you want to continue your education or you want to pay for your children to go to college, this is another great reason to sell an annuity or lottery winnings. There is no doubt that a college degree will increase your or their earnings potential but college is expensive.
For the 2014 to 2015 academic year, the price tag for the average private school was about $31,000. Public schools averaged a little over $9,000. Outstanding student debt stands at about $1.3 trillion. Financial aid may not be available if you are receiving annual payments from an annuity or the lottery.
Studies show that people are in a much better position when they finish college without a heap of debt. You would be doing yourself or your kids a big solid if you were to sell all or part of your structured settlement to pay for college.
3. You want to start a business.
If you have found direct funding source for structured settlements, selling your settlement to start your own business is a great idea. Many businesses fail because they do not have enough start up capital. The average amount of money people need to successfully launch a new venture is about $30,000, according to the Kaufmann Foundation.
If you sell your structured settlement, you can start your business the way you want to and you can do it right. If you have always dreamed of owning your own business, this can be a way to make that dream become a reality.
4. Buy a new home without a mortgage.
After the most recent recession, it is understandable that you may want to avoid a mortgage if you can. Selling your structured settlement can be the best way to buy that dream home outright.
Buying a house is also an investment in your future. You still need to be smart about it. You should do your research into the area where you want to buy and make sure you are not buying when the housing market favors the seller more than the buyer but this is another good reason to want to sell your structured settlement.
If you have found the direct funding source for structured settlements, you may want to sell. You need to research your options and talk to your family to make your decision.