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Reasons to Sell Your Structured Settlement

You’ve recently run into some financial difficulty, and you don’t like feeling that powerless. With other problems, you can act to overcome the situation or at least work with it. When you have monetary problems, you can’t always do something about them. You can’t automatically wish yourself into a higher-paying job or make all your debts disappear. So what do you do?

Some people choose to give themselves an economic boost by selling their structured settlements. However, you shouldn’t use this option for just any kind of debt. You should only use it when you really need it. We’ve given you a few examples of good reasons to sell your structured settlement below.

1. You Want to Start a Business

You’ve recently run into some financial difficulty, and you don’t like feeling that powerless. With other problems, you can act to overcome the situation or at least work with it. When you have monetary problems, you can’t always do something about them. You can’t automatically wish yourself into a higher-paying job or make all your debts disappear. So what do you do?

Some people choose to give themselves an economic boost by selling their structured settlements. However, you shouldn’t use this option for just any kind of debt. You should only use it when you really need it. We’ve given you a few examples of good reasons to sell your structured settlement below.

1. You Want to Start a Business

When you start a business, you have to have more than a great idea. You also have to have some start-up capital, especially if you need a separate office to house your business in. Most people don’t have that amount of money sitting around in their bank accounts, so they need to find some way to scrape together start-up capital.

By selling some of your structured settlement payments, you give yourself extra cash flow. You’ll have the start-up capital you need to begin making money and working in your dream career.

2. You Plan to Purchase a Home

A similar principle applies when you purchase a home. You can pay for most of it with a mortgage, but you still need to make a down payment on the home. And you probably don’t have that much money sitting around in your bank account. You’ll have that amount eventually thanks to your structured settlement, but you need that money now so the previous owner will sell to you.

Go to a lump sum provider and sell some of your structured settlement payments. You’ll get the money you need for that down payment, and then you can get the home you want instead of settling for a less desirable one.

3. Your Mortgage Rates Have Increased

Even if you’ve already bought your home, your mortgage payments may have suddenly increased. When this happens alongside other hefty financial obligations, you may find yourself flooded with debt, and that could lead to bankruptcy.

Consult with a financial counselor to see if selling your structured settlement could help you here. In many cases, it can. However, in other cases, you may want to pursue other avenues, especially if selling your structured settlement only puts a temporary Band-Aid on a long term financial problem.

4. You Need to Pay Off Debt

You should only sell your structured settlement payments to pay off simple debts—not debts that could pull you into bankruptcy proceedings. Simple debts may include:

  • Basic, but not extensive credit card debt
  • Student loans
  • Medical debt (which we’ll discuss below)
  • Legal fees

If you only have simple debts, selling some of your structured settlement payments will keep your finances healthy. You’ll not only pay off your debts faster but also preserve your credit score, which means banks will trust you more when you ask for mortgages, auto loans, and other loans later.

5. You’ve Gone Through a Divorce

When you go through a divorce, not only do you have to pay for legal fees, but you have to shoulder other expenses as well. You may have to buy a new home. You have to pay for moving fees as you relocate all your belongings (and your children, if you have them) to the new location. You’ll also have to pay for name changes, counseling, and other appropriate fees as well.

Additionally, if you didn’t work before the divorce, you’ll have to look for a job. Many people don’t find them right away, so they find themselves in the midst of financial difficulty pretty quickly. Selling your structured settlement can help you in this kind of situation.

6. You’d Like to Return to College

You graduated or left school because you needed to work, but now you want to go back. If you can’t get student loans, you can sell your structured settlement payments to cover the cost of tuition. Make sure you research tuition beforehand so you know how much of your structured settlement to sell.

7. You Experienced a Medical Emergency

Maybe you just experienced a car accident or one of your family members fell while hiking. You have insurance, but you don’t have enough money in your bank account to cover your deductible. You’ll have that money in the future, but you need it now if you don’t want to damage your finances. Your structured settlement can help you offset medical expenses in the meantime.

8. You Recently Lost Your Job

As mentioned above, most people don’t find work again right away, and unfortunately, your expenses won’t take a break in the meantime. You can sell your structured settlement for temporary income as you search for a new job.

 

Your structured settlement can turn into a valuable tool in times of financial crisis. Call a lump sum provider to learn more.