Lumps are the lump sum of cash received for a person or business. They have been used for many years as payment arrangements for various debts. Lumps may be used in conjunction with other payments or may be made to pay bills and debts at once.

There are many advantages of receiving a lump sum. They include: they have the potential to bring about an immediate increase in cash flow, they allow for greater flexibility in budgeting, they reduce or eliminate the need to take out a loan, and they may provide tax benefits. The benefits of a lump sum may also be important to someone considering retirement planning.

There are advantages and disadvantages to both types of payment. While one may receive the full value of their lump sum in cash, they may not receive the full amount in cash. The full value of a lump sum will be based upon the market value at the time the payment is received. If the market value does not rise enough to cover the cost of the payment, there is no full value received. This can result in a loss or an overpayment of the lump sum.

Another disadvantage of cash versus payment is that it may not always provide a full value. Because a large lump sum may not be available in the present day market, an early payment may not be possible. It may be possible to receive a higher value in the future. However, this is not always possible. Some people may receive a smaller value than they originally thought when they took out the debt.

Payments in cash have advantages for those who have the money available. Larger sums may be used for immediate needs. A large lump sum may be used to buy a house, a car, or education. The lump sum may be used to purchase a vacation or travel. Lumps may also be used for tax preparation, educational expenses, or personal debt consolidation. Smaller sums may be used for savings, investments, and debt consolidation. In addition to being used for immediate needs, lump sums can be used for long term goals such as buying a home or investing in retirement accounts.

When considering payments versus payments, it is best to consider how a lump sum may be used before taking out a loan. It may be a better option to take out a loan for the lump sum than to have smaller payments that will require more loan fees in the future. Once the loan has been taken out, it may be easier to repay later.