If you have been recently awarded a monetary settlement as a fallout of a lawsuit, or have just won the lottery, you would be no stranger to the concept of a structured settlement. Also known as an annuity settlement, these do not provide you with your total award at one go. Rather, these provide monthly payments, typically over the period of many years. While these might make sense to some people, there can very well be cases where you have run into a financial difficulty of some sort and need a lump among of cash immediately. Financial emergencies can happen all the time, and the need for cash might crop up, catch you unawares and take you by surprise. Fortunately, if you are currently in the process of receiving money through a structured settlement, you can use that to get your money up front if you either sell your structured settlements or inquire about pre settlement loan rates.
In America, the average payment of a structured settlement is well over $300,000. If you are entitled to receive a similar amount of money and do not have the luxury of waiting for annuity payments to conclude in a few years, there are a couple of options you can explore. You can either opt to get cash for your settlement by selling it outright, or get a pre settlement loan using your settlement as a guarantee.
Addressing Urgent Needs
When it comes to finances, warning bells can start sounding any time. You might have racked up a little debt on your credit cards or delayed your loan repayments. You might feel the need for immediate cash to start your business or receive further education. Friends or family members might come up with a crisis, and you would like to help out. In these situations, waiting for your structured settlement payments to come through is not an option. There is a need for immediate bulk cash, and there are two ways to achieve that.
Get A Loan – There are many companies that would be willing to advance you a loan on the back of your structured settlement award. Typically, you can borrow money against your structured settlement award and commence repayments as your annuity payments start coming through. If you look around, you might be able to locate a lender with low pre settlement loan rates and relaxed repayment options, and this is one of the best ways to raise immediate cash when you are in need. This does not affect your structured settlement in any way, and you can receive the money you need within a short span of time without having to pay too much in way of interest. The trick is just to choose to do business with a company with low pre settlement loan rates.
Sell Your Settlement – While getting a loan can be an option, you can also opt to sell your settlement outright. This means that the buying company purchases the settlement from you and immediately pays you the total value of the settlement. While this does effective terminate your involvement from the settlement, it also does not put you under the burden of loan repayments. In fact, more than 90% of people who have opted to sell their structured settlements profess their satisfaction regarding the decision. If you are one of the 37,000 Americans on average who make use of structured settlement money every year, this is a good option to consider if you just want your money up front.
These are two great ways to raise cash instantly through your structured settlement. Find the right buyer or look at pre settlement loan rates to make an informed decision that can save you from financial doldrums.