Lump Sum Versus Payments – Is This A Better Alternative Than Debt Settlement?
The concept of a lump sum versus payments is quite a complicated one and can be rather difficult to fully grasp. However, once you understand what a lump sum is and how it works, then the decision on which option is best for you will be made much easier.
A lump sum is a large amount of money that a person has received in a transaction that was conducted without any payments. When money is received in this manner, it is known as a “donation.” It can be a very scary concept to some people but a lot of money goes into paying back debt and paying off accounts. If you were to receive this type of payment, you would be receiving that amount to which you would have been entitled if you had not been a victim of the crime.
Because a lump sum can be very substantial, it must be treated very carefully. This type of payment can not simply be put anywhere and used for anything you want it to. You should never take advantage of this type of payment as it can have serious repercussions.
In addition to the potential for legal issues, this type of payment is also very difficult to access. It may appear as though you will have a lump sum in your possession and then need to wait for years before anyone can actually use it. The IRS will always have your case in their mind when you try to access this type of money because it is so important.
Cash is a better alternative. The biggest problem with the lump sum is the fact that you are going to be required to make payments every month. This could be a difficult thing to do as it means you have less cash in your pocket to live on. A lump sum payment will allow you to pay off debt and get out of debt quickly while also allowing you to save more money in the process.
When considering lump sum versus payments, you should really think about all of your options. Even if you have to go through this process, it can be much easier and more affordable. Consider a debt consolidation loan or a home equity loan to help you get out of debt quickly.
These types of programs are typically very good at reducing monthly payments because they can negotiate with the creditors to obtain some kind of settlement programs. They will work out a payment schedule that the creditor agrees with and the client will have their debts reduced by a significant amount. This is usually done in exchange for a lump sum of money.
There are many reasons why you might want to consider lump sum versus payments. It is important to realize that there are no shortcuts to eliminating your debts and getting out of debt. You will have to work hard and use the resources that are available to get out of debt.