If you have settlement payments, you may have a built-in lump sum of funds in the event that you need it. The selling process is simple: just contact your payment holder to get started. Upon review and an offer, your case will be sent to a judge to approve your request. It is a standard process that can help individuals in a number of scenarios. Here are six reasons for selling.
Paying for Medical Bills
Even with quality medical insurance, a health emergency or hospital stay can come with out-of-pocket expenses that total more than what you can reasonably pay off with your savings account. If you want to go for an elective procedure, such as cosmetic dental surgery or IVF treatments, it may not be covered by your insurance.
It’s tempting to secure a loan for these expenses, but loans of this nature can come with a higher interest rate, which forces you to pay more than the procedure costs. However, selling your settlement payments can provide you with what you need.
Covering Funeral Expenses
The passing of a loved one is, unfortunately, a part of life. Sometimes it’s also unexpected, leaving your family with responsibilities you weren’t anticipating, like planning a funeral. A funeral can be expensive, especially if you choose premium options, and having money in the bank from selling your settlement payments can alleviate some stress.
Reducing Debt
Image via Flickr by Got Credit
The average American family has around $137,000 of debt, according to Debt.org, but you may not have to be one of them if you sell your settlement payments and use the earnings to pay off the majority or all of your debts. This can help you avoid bankruptcy or entering into an endless cycle of interest-only payments.
Making a Major Life Purchase
It’s possible that one of the few ways you can afford a major life purchase, like a new home or car, without falling into a massive amount of debt is to find ways to secure a lump sum. This is when selling your settlement payments can come in handy. You can make a purchase or even invest in something else that will earn you an income over a defined period of time.
Paying for Education
According to Marketplace, most college students will need to apply for student loans to even afford to go to college, with the average loan debt circling around the $30,000 mark upon graduation. The nationwide student loan debt is somewhere around $1.6 trillion, and it increases every single year. Student loans come with some repayment options after graduation, but they also come with compound interest at high rates. Instead of becoming part of the cycle, use part of your lump sum to pay for books and tuition.
Starting a New Business
If you’ve always dreamed of being your own boss, making your own rules, and forming your own hours, then consider selling your settlement payments to give yourself the cash needed to fund your startup. If you don’t have to start a new business with debt through a business loan, you’ll be better off for it.
Selling your payments to a structured settlement company can provide you with the freedom you need to tackle a new phase of your life or to fix past financial mistakes with ease.
