HomeBest optionsThe Pitfall That is Debt How to Get Out With a Bit of Luck and Strategy
The Pitfall That is Debt How to Get Out With a Bit of Luck and Strategy
February 23, 2016
America was once the land of opportunity, unfortunately the current state of our nation leaves millions of Americans unable to provide for themselves. As politicians continue to squabble, real people are suffering from crippling debt caused by high interest rates, unfair medical bills, or other factors designed to ruin lives. Getting out of debt is a challenge for many; some are able to get out and share their story.
The Severity of Debt
Debt affects a large number of Americans, though it may stem from different sources. Because of debt and other factors, up to 27% of Americans have no savings at all and are forced to live paycheck to paycheck. It has been shown that over 40% of American families spend more money than they earn; it is no surprise that the average American household has 13 different credit or debit cards. Although household income has grown by around 26% over the past 12 years, the cost of living has simultaneously increased by 29% over the same period of time. Student loans are responsible for around 1% of bankruptcy claims in the United States with the average 2015 college graduate being required to pay back just slightly over $35,000. Medical debt plagues one out of every four people in the U.S. who owe more in medical debt than they have saved in their emergency savings. It is extremely easy to fall into debts and excruciatingly difficult to eliminate debt; settlement recipients have a golden opportunity to eliminate debt however.
Pursuing a Structured Settlement
A structured settlement is typically awarded to an individual involved in a personal injury case. Personal injury cases include but are not limited to: auto accidents, workplace injuries, product liability cases, and cases of medical malpractice. Those with a personal injury case ought to seek legal aid to compose an effective case. In over 90% of personal injury cases, the accused party chooses to settle out of court with a structured settlement to avoid negative publicity or punitive action in exchange for a dropped case. Although a structured settlement may seem like an easy way to get out of debt, experts typically advise against pursuing a structured settlement unless it entails a sizeable claim of at least $100,000 — the average structured settlement case pays out around $130,000.
Selling Your Structured Settlement
Due to the nature of a structured settlement, recipients can expect a series of tax-free payments over the course of a number of years or the recipient’s lifetime. A recent study found that over 65% of people who receive a structured settlement would rather have a lump sum payment; those seeking to eliminate debt could benefit from settlement cash more than anyone. There are a number of businesses that can allow you to access your settlement cash by selling some or all of the settlement payment. These companies offer a lump sum of cash for your settlement by buying your payments at a reduced rate — although recipients will not receive as much from a lump sum, those looking for extra cash can eliminate their debt and get ahead on their finances by selling their payments wisely. Some companies even offer pre-settlement funding for those who are in dangerous positions due to their overbearing debt. For those living paycheck to paycheck on a structured settlement, take control of your settlement money at your convenience through a financing company that will buy your settlement payments immediately.