Whether you are the recipient of a structured settlement or annuity or have never been close to receiving one, you may look at individuals selling payments and wonder why in the world they would do that! Well, there are usually very logical and responsible reasons. Everyone has their own reasoning but below are the top 5 reasons.
- To pay off debt! Debt can happen to anyone and it can happen quickly and when it adds up, it seems impossible to ever overcome. A lot of debt is put on a credit card with an interest rate of 24% or higher! This makes the debt grow faster than you can imagine and without a lump sum, it’s nearly impossible to get rid of. Selling a structured settlement or annuity allows individuals to take a lump sum and pay off that debt before the interest continues to accrue.
- To pay for school! Most people are responsible for paying for their higher education all on their own. This can be hard because education presumably allows you more opportunities for employment but if you can’t afford the education, how do you get the employment? Selling annuity payments in the future can give you the lump sum to pay for school and obtain a job that will then become its own annuity for future support.
- To purchase a home! Buying a home is a huge financial obligation and step in someone’s life. Most sellers require a lump sum payment to be put down in order to purchase a home. It can be very difficult to save a large lump sum when your income is going to support you and your family. Selling a structured settlement or annuity allows individuals to make a down payment on a new home without struggling day to day to support their family. Additionally, the down payment decreases the amount being borrowed and saves money over time in interest.
- Start a business! Not only is starting a business a lot of work, it is expensive!!! If you are working and trying to start a business at the same time, it can seem like there will never be enough time or money to be successful. Having a lump sum to pull from for start up business expenses can make the process a lot easier and give you the capital to start a successful business.
- To pay medical bills! With or without insurance, any sort of medical issue can really put a huge financial strain on a family or individual. Whether it’s a broken bone, a long-term condition or something as small as a toothache, it is expensive!! Add that unexpected medical expense to the normal day to day costs and it can be overwhelming, and bills can start to pile up. Taking physical care of yourself is very important and not worth not doing because of money. Selling a structured settlement allows individuals to take care of themselves without having to sacrifice health because of money.