3 Questions to Ask Before Selling Structured Settlements
Selling a structured settlement can affect your finances for a very long time, especially if you've been relying on the monthly or annual payments as a major part of your income. With that being said, however, there are often very good reasons for selling a structured settlement, including the possibility of having more in hand over time using your own investments. Before you rush into selling a structured settlement, be sure to ask yourself some basic questions.
Is Selling My Structured Settlement Really My Best Choice?
There is always an allure with the idea of large sums being readily available, but it may not be the best choice for you to sell your structured settlement at this time. If, for example, your structured settlement payments make up the bulk of your income or you rely on the payments monthly or annually to cover basic expenses or emergency expenses, selling your entire structured settlement may not be the right choice for you right now. You might consider selling just a portion of your structured settlement, however, and retaining some of your ongoing payments for ongoing expenses.
Do I Need a Lump Sum Payment?
It's worth stating that there is a difference between a need and a want. When you have a medical emergency you are more likely to need a large amount of cash than if you can't afford the vacation you've dreamed of this year. There are many legitimate reasons to sell a structured settlement, but there are just as many non-reasons. It's important that you know the difference.
How Long Does This Take?
If you're looking at a financial emergency, selling a structured settlement may not offer a short term solution. The process generally takes 60 to 90 days, which makes the settlement a great option for some emergencies, but not for those which require payment in full tomorrow.