Based on recent news about the secondary market for pre-settlement structured settlements, you already know that transfer of your structured payments is perfectly legal. But understanding why you are able to sell your future payments for cash now doesn’t mean you necessarily should. There’s a very good reason why part of your future settlement was set up as a benefit for you in the first instance – to help you cope with your current expenses and/or future financial goals. You may have never been sure what those future goals might be, but they are there, and they need to be addressed. And when you sell a portion of the future payments you receive, you are addressing one of the many issues that are contributing to (and causing) your current financial difficulties.

Now suppose you are no longer able to work, or are not able to keep up with the mortgage payments on your home, or meet other obligations. Suppose you have a vehicle that needs to be financed, but the monthly payments make it impossible to do so. You could try to sell structured settlements for a lump sum, but that would not be the best option for you if the future payments were still an issue for you. Why? Because even if the courts allow the sale of future payments based upon what the current debts would be at that time, what will happen if something happens in the future that makes it impossible to pay those debts? And if something happens to your car or home that you really need, won’t it create further financial hardships for you?

The answer is no. While you could sell structured settlement purchases, and receive a lump sum of cash today, doing that will actually create more of a problem than it solves. If your current debts are based upon future income, the factoring companies will most likely require you to take out new loans at higher interest rates in order to continue receiving your monthly payments. So, how does the whole scenario end up working out for you?

You get the lump sum of cash from the factoring company and the insurance company agrees to cover the difference between the total of the total structured settlements, and the total of the total future payments owed to the victim and their heirs. Your monthly payments may not be lowered by the factoring company. But, it is safe to say that the insurance company will not reduce your payments to something you can not afford. The amount that is reduced is typically dependent on the amount of future payments due to the victim and their heirs. If you owe ten thousand dollars in medical bills, the company will most likely require a down payment of around five thousand dollars.

So now you see why you need to work with a discount rate loan company to sell Structured Settlement payments. It is much better for all parties involved, (you, the victim/ beneficiary and the discount rate loan company) to come to an agreement prior to you getting into any negotiations. Once you enter into negotiations and as a matter of fact, once you receive a offer from the company, you should immediately research the company in order to make sure they are legitimate. A legitimate company would have a BBB logo on their website and should be in good standing with the Better Business Bureau.

Once the entire selling process has been completed, you will have the money that you need to pay off expenses and live the life that you have dreamed of. Structured settlement payments are the best option for many individuals who are in need of some fast money. The only thing that you need to be careful about is choosing the right company to work with.