Know When To Sell Your Structured Settlement

When it comes to major financial decisions such as investments or selling structured settlement payments, one should not enter into them lightly. The fact of the matter is that they are serious decisions that need honest consideration on your part. A structured settlement offers a structured amount of future income that you can depend on. There are some instances when selling them is necessary or a smart choice.

Good Reason: You Are In Desperate Need of Money

In life there is so much uncertainty, and sometimes that involves things that are unexpected and out of our control. When there is a sudden tragedy or life event that seriously impacts your finances, you can find solace in knowing that you can sell all or part of your structured settlement payments. While you may be losing the all or a portion of your future payments, you will then have the means necessary to get yourself and your family through hard financial times.

Typical Reason: You Want to Make a Large Purchase

When it comes to selling structured settlements you are basically selling the security they bring in the form of monthly payments. If you are thinking of selling because you want that new high-definition TV, a luxury vacation or the new iPad, you’re not alone. These types of objects are what most people purchase once they’ve received their lump sum. A word of advice though, is to make sure that even with those purchases you won’t fall behind on bills. The transaction is final so once you sell your structured settlement, there is no turning back.

 

Know Your Spending Style

Part of knowing whether or not you should sell your structured settlement payments will greatly depend on your spending style. If you are the type of person who will spend frivolously if you had access to a large sum of cash, than you probably should leave the settlement as it is, with your monthly installments. However if you feel you can responsibly take hold of that money and use it to the best financial benefit, selling may be the option for you.

When you are hard on your luck and in need of money fast, it is easy to let your desperation overweigh your thought process. Think rationally and make a clear minded decision on what is right for you and most importantly, be responsible and hold yourself accountable with whatever decision you make.  

Mercedes Potter is a part of an elite team of writers who have contributed to hundreds of blogs and news sites. Follow her @CedesPotter to see what else she’s been blogging about.

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