The Pros and Cons of Selling your Structured Settlement Annuity Payments
One question structured settlement factoring companies tend to hear a lot is "Why should I sell my payments?" Selling a structured settlement annuity is not something to be done a whim. Without looking at the pros and cons of selling, the annuitant may not get the best offer. Each financial situation is unique therefore it is important for the seller to carefully research their options and consider the best possible outcome before deciding to sell.
Here are some of the pros:
Selling your future structured settlement payments is considered to be a tax-free transaction. Be sure to check with a qualified tax advisor for more details.
You do not acquire new debt when you sell structured settlement payments.
You can use the cash to pay off existing debt saving hundreds or thousands in interest and fees.
The discount rate is often much lower than the interest rate of most credit cards as well as other forms of financing.
There are no credit checks and it has no affect on your credit score.
You don't have to sell all your payments so you can save some income for later.
You can defer the sale of your payments and continue receiving regular payments while getting your cash now.
You can re-invest your money in investments that produce a higher return.
Some of the cons are:
Selling all or part of a structured settlement annuity will reduce the amount if not eliminate your guaranteed future payments.
Selling structured settlement payments doesn't happen overnight. It can take up to six weeks or longer depending upon the state you live in as well as other circumstances.
You need to research the company you are dealing with to ensure that you are getting the best offer.
If you are not good with money you can squander away your future income.
Having a structured settlement annuity protects the owner from poor investments because they are protected from a loss of value. If you re-invest your money in other more risky investments you lose that protection.
Only you can decide whether selling your future payments is the right thing to do for your situation. However having trustworthy advisors can be an asset when making that decision. Rescue Capital can help you by explaining all your options as well as providing you with a no-obligation quote tailored to you.
Here are some of the pros:
Selling your future structured settlement payments is considered to be a tax-free transaction. Be sure to check with a qualified tax advisor for more details.
You do not acquire new debt when you sell structured settlement payments.
You can use the cash to pay off existing debt saving hundreds or thousands in interest and fees.
The discount rate is often much lower than the interest rate of most credit cards as well as other forms of financing.
There are no credit checks and it has no affect on your credit score.
You don't have to sell all your payments so you can save some income for later.
You can defer the sale of your payments and continue receiving regular payments while getting your cash now.
You can re-invest your money in investments that produce a higher return.
Some of the cons are:
Selling all or part of a structured settlement annuity will reduce the amount if not eliminate your guaranteed future payments.
Selling structured settlement payments doesn't happen overnight. It can take up to six weeks or longer depending upon the state you live in as well as other circumstances.
You need to research the company you are dealing with to ensure that you are getting the best offer.
If you are not good with money you can squander away your future income.
Having a structured settlement annuity protects the owner from poor investments because they are protected from a loss of value. If you re-invest your money in other more risky investments you lose that protection.
Only you can decide whether selling your future payments is the right thing to do for your situation. However having trustworthy advisors can be an asset when making that decision. Rescue Capital can help you by explaining all your options as well as providing you with a no-obligation quote tailored to you.
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