Why a Lump Sum May Be More Beneficial Than Structured Payments

Everyone wishes they had more money than they do. The problem is, when we get more money, we spend more money and then we are stuck in the same cycle. But, if you are reading this, chances are that you already have, or are about to come into a great deal of money and are wondering how your life is going to change. Will it be for the better or for the worse? Will you be able to remain financial wise and will you be tempted to splurge and go crazy? Will your friends and family stay in the same positions in your life or will they begin to ask for money? All these questions are probably running through you mind and it can make the joy of receiving money a little daunting. Not to add to your list of decisions and questions but before you even have to answer any of those questions or get your money, be it structured settlement annuity or a lump sum payout, there are some pre settlement loan benefits that are available to you. Whether or not you take advantage of pre settlement loan benefits is entirely up to you. However, taking into account the advice of a financial adviser before making any decisions about whether or not to sell your structured settlements is a good idea.

Pre settlement loan benefits is basically getting your money before your settlement has gone through. If you know you are going to be getting your money then you can sell your annuity in order to get your money now and begin putting into action your plans. Then, once your case goes through, that is how you will pay back the pre settlement loan.

A pre settlement loan benefits you because you will be able to get started right away with your plans. You may want to pay off debt, credit cards, medical bills, school loans, personal loans, mortgages, car payments or something else entirely. Most Americans have some sort of debt that they are living with and you may be one of the lucky ones that is going to get out from it entirely. If you have debt that is accruing interest, the best thing that you can do is to take advantage of a pre settlement loan and receive a lump sum that will allow you pay it all off in one go so that you can avoid the accruing interest. Of course, you will want to make sure that if there are any early payoff fees that they are less than the interest would be in the long run. They usually are, but you’ll want to check it out, just in case.

If you are going to be getting a settlement due to some sort of accident, this can take a long time to process and come through. Especially when insurance companies are involved. There may be lots of disputes and appeals but eventually, if you know you are going to win, you will get your money but it may take awhile. If you are going to be needing a new car due to the accident or to pay off medical bills in order to start treatment that you only need because of the accident, those things are immediate needs and getting a lump sum payout right away would be in your best interest.

Should you decide to sell your fixed payments and receive the lump sum, there may be some fees attached that you’ll need to pay but in the long run it will be very beneficial for you and help you get your life back on track. You may have found yourself under water and this is the answer that you needed in order to get back on your feet. Well, congratulations! You are one of the lucky ones that are going to be able to get out from this messy financial situation that we call life. Just be careful to be wise with your finances and make sure that you do not take for granted the gift that has been given to you; you don’t want to end up back in the same situations again.