Finding my solution
How your structured settlement can help you
Post-settlement program, how to protect and secure your finances
Some people think that selling some or all of their future structured settlement/annuity payments is not for them. And realistically that is true; it isn’t always the right move for everyone.
However, exchanging part of your future payment stream for a more immediate lump sum can do more than solve a financial crisis. Sometimes selling can allow you to follow a new opportunity that could change your life that you normally wouldn’t be able to do. It’s good to consider the possibilities of what could be if you were to sell your structured settlement or annuity payments.
Buying a Home
Much of the American Dream centers around buying a home and becoming the king of your castle. If you are like most Americans, this purchase will likely be one of the largest and most important financial decisions of your lifetime. Even if you are looking at buying a small home, saving enough for a down payment is never easy, and in today’s competitive real estate market, every cent counts. One way to speed up this process is by selling a portion, or all, of your future payments.
Buying a home is more expensive than just the list price. Between closing costs, inspection fees, and even curtains, a lump sum of cash would be particularly useful. According to Realtor.com, average closing costs range between 2%-7% of the purchase price in addition to the down payment which means a lot more money than most anticipate throughout the buying process.
Another reason to sell your annuity is to help produce a larger down payment which results in a lower monthly mortgage. Considering mortgages are based entirely on interest, a lower monthly payment, or shorter pay period could save you thousands in the long run. In addition to the mortgage savings, you would not be required to pay for private mortgage insurance if more than 20% of the purchase price is put as a down payment.
In addition to down payments and hidden fees, a lump sum can also be useful in fixing up a home once it is purchased. Instead of working on a fixer-upper over time, selling your future payments could provide you the funds to make all of the repairs up front, allowing you to enjoy your home sooner. This same concept applies with interior design and furnishings.
Paying off Expensive Debt
Most Americans have accumulated high interest credit card debt which is costly overtime and can hurt your credit. Selling your structured settlement or annuity could provide a lump sum to wipe out previous debts and save you money in the long run. It is important to remember that you do not need to sell your entire annuity or future payments, just the amount you need to put yourself in a better financial position.
Buying a Car
Trying to buy a car with a loan can be difficult if you have less than perfect credit. And even with a loan, cash is needed for a down payment. If you have a structured settlement or annuity, you do not need to take on additional debt in order to purchase a vehicle. Similar to credit card debt, purchasing a car outright would avoid interest incurred over the lifetime of the loan and could potentially save you money. Selling your future payments would allow for a down payment of a car, easier access to funds for payments, or even the entire purchase price of the car itself.
Paying for Education
College is an expensive endeavor yet considered almost necessary with regard to earning potential over a lifetime. Even with scholarships and financial aid, most Americans who go to college still end up with thousands of dollars in student loan debt that takes decades to pay off. While obtaining a degree can mean a more lucrative career for you or a loved one, selling future payments could prevent you from going into debt for education. It could also help pay for the additional expenses of college including room and board, books and supplies, technology, and hidden fees such as parking. While educational costs vary by institution, the opportunity to earn a degree without accumulating debt through use of future payments would provide lasting peace of mind.