Monday, January 26, 2015, AM | Leave Comment
Finally receiving a structured settlement is just the beginning. Even though this arrangement will ensure that you receive regular payments according to an agreed on schedule, there are some good reasons for finding a buyer and obtaining a lump sum payment now.
If you find yourself in this situation and wonder if there are any real benefits to this approach, keep reading.
Dealing with Pressing Debt
If you have debts that are accruing high interest rates every month, selling your settlement and paying off those obligations now could be better for you in the long run (Source: myLumpsum.com).
This strategy brings the accumulation of interest to a halt, and also ensures that none of those creditors will submit negative reviews to the major credit reporting bureaus.
Even allowing for the fact that the lump sum payment the buyer provides does not equal the total of those staggered payments, your overall financial picture will be brighter.
Go Back to School
You’ve always wanted to go back and finish your degree, but there was never any money.
Selling the settlement means you can pay cash for your classes and any materials that you need to complete the coursework.
As a bonus, you can choose between brick and mortar schools or opt for an accredited online school if you like.
When you’re paying cash, there is no need to wonder if a lender will approve your choice of school.
Buy a Home
For most of your adult years, the idea of becoming a homeowner has remained an elusive dream.
Every time you saved up enough for a down payment, something would happen and drain the account.
With the money you obtain from selling the settlement, you will finally be in a position to buy the home you’ve always wanted.
Fund Retirement Accounts
You could take all or at least most of the money from that buyout and fund several retirement accounts.
Choose the accounts well, so that they will grow in the years to come.
The result is that you will be financially comfortable after you retire, and in a position to make the most of those years.
Set up a College Fund
The money from that settlement buyout does not necessarily have to be spent on something you want for yourself.
Perhaps you have a child or grandchild that could use help with going to college.
You can set up an interest bearing trust fund and structure it to cover tuition, fees, and other expenses associated with pursuing a degree.
Only you can decide if these or other reasons are good enough to motivate the sale of your structured settlement.
Take a good look at your financial condition, your goals, and your prospects for the future.
From there, it will be easy to make the right decision.Facebook.com/doable.finance