Selling Structured Settlements To Stop Debt

Posted on Sep 18 2013 - 12:30am by Mark Long

Debt

If you or a family member has been involved in an accident, you will be well aware of structured settlements and the many benefits it brings. However, many find themselves in debt due to unexpected medical bills, long term unemployment and other misfortunes. It has subsequently become common to sell structured settlement payments, which can alleviate the financial burden. I have often been asked “how do I sell my structured settlement?”, and the answer is straightforward; look for a highly regarded company that will offer you the amount needed to pay off your debt. There are many factors to consider before accepting an agreement but a quick one-off payment could be the solution to getting you and/or your family out of debt.

Will it cover the total debt?

This is important to consider. You will never get the total worth of your settled structure; the buying company is looking to make a profit, and once you have received a lump sum it is likely you will need to pay state and federal tax on the amount. So make sure that accepting the amount is worth it. If you will only pay off a small percentage, it may be worth keeping hold of your payments and looking at alternative options. On the other hand, if you the structured settlement payments are worth more that you need to pay off your existing debt, remember that you do not have to hand over all of your settlement. Instead you could opt for a partial payout which would provide you with enough to pay your financial necessities and still allow you to receive further tax free payments in the future. Carefully analyze your financial situation before going any further and if you are unsure, it is worth consulting a structured settlement payment calculator, financial advisor or attorney.

Has the company received good reviews?

Unfortunately, the companies who offer the best payouts may not always be the most reputable company. It is worth doing your homework when it comes to choosing the right company for you. A good place to start is the Better Business Bureau which provides a list of all the registered companies available. If the company which has offered you an agreement is not registered on here; avoid at all costs! Furthermore, check the company for its ratings and reviews and look in to any complaints it has received. Many companies have been known to offer a payout and then later on have not honored the agreement. Do not fall in to this trap, not only will you not receive the lump sum you were hoping for, but it will take up an unnecessary amount on time which could increase your debt.

Don’t say yes if it doesn’t feel right!

This may sound straight forward, but when you’re faced with debt it is easy to jump on the first offer that’s on the table. Pace yourself; your debt isn’t going to get any worse if you take a few extra days to consider all your options! Double check there won’t be legal fees. Double check the companies’ reviews. Double check there is no reason for the judge not to be satisfied when this is brought to court. Avoiding these problems with prevent time being wasted and money being thrown away on expenses that could have been avoided. It is worth the time and effort to make sure that you get the most from your settlement and ensure that you and your family can continue living without the stress of financial difficulties and stress.

Photo Credit: Flickr/Images Money

About the Author
Mark Long

Selling structured settlements has been Mark Long’s area of expertise for over a decade. After a successful career as a financial adviser, he decided to start offering advice for those seeking cash for structured settlements.