Have you recently won the lottery or have been awarded financially as a result of winning a lawsuit? If the answer is yes, it is extremely likely that you received your payment in the form of an annuity. Typically, this type of payment works in a certain way — you receive a certain amount of money at regular intervals till the entire due amount has been paid to you. While this might make sense for some people and for certain circumstances, you might be in a situation where this kind of payment system does not seem feasible to you. Rather, you would be in a better position if you receive your entire payment at one go.
If you have recently been awarded such an annuity which comes in the form of structured settlements, there might be a number of reasons why you might prefer getting your money up front in cash instead of having to wait for payments to come through annually. Structured settlement payments are also relatively smaller, which means that you cannot use them for large investments or other needs which require a significant financial outlay. If you find yourself in such circumstances, there is always one option you can explore — if you sell annuity payments to collect your full payout at one go.
Why would you opt to sell your annuity? There might be a number of reasons why getting the entire amount of money owed to you at one go might make sense. Getting cash for an annuity need not be a difficult process either, as there are companies that buy your structured settlement and give you cash up front. Finding such a company is not difficult, as a little bit of research will surely land you the right deal. If you are asking yourself if you should go for it, it really depends on what you want to achieve with the money you receive. Let us take a look at some possible scenarios.
What You Can Accomplish Financially When You Sell Annuity Payments
Selling annuity payments is a process that should only be undertaken when there is a specific goal, a specific purpose in mind, and not just for the sake of it. If you do not have any significant expenses planned in the near future, you can very well do without it. However, if you find yourself in a situation where the money would come in handy for palpable requirements or plans in the near future, you can definitely opt for this alternative method of getting your cash.
One of the most common reasons why people opt to sell annuity payments is to get out of debt. Over 40% of American families tend to spend more than they earn. In fact, on average, these families have up to 13 credit cards per home and at any point of time might have about $3000 of revolving debt. If you find yourself in a situation where you are finding it difficult to pay off your debts and some cash inflow could be a good thing, then selling your structured settlement can be one of the better ways to reduce debt.
You can also sell annuity payments to get the initial seed money to start your own business. If you have had entrepreneurial ambitions for a long time and have a great business idea but not been able to get things started during the lack of the initial working capital, this is a great way to ensure that your business gets off the ground without hitch. Money from selling your annuity can also be used to fund higher education, or to complete important purchases like real estate or vehicles. You can even use the money you get by selling annuity payments to finally take that long awaited vacation with your family in grand style, seeing new places and recharging your batteries.
Overall, if you are in a situation that warrants the need for ready cash, it can make sense to sell annuity payments. Make sure that you find the right company to do business with, ensuring that you walk off with the best deal on your structured settlement that you can find.