Here, we make the case for why you should hang on to your future payments unless you absolutely need to sell them for immediate cash.
Strange topic for a company dedicated to helping people sell and buy these assets, right? But we are dedicated to ensuring that participants really understand their options. Annuitants can only legally sell future structured settlement payments for cash if the court decides the move is in their best interest. However, “best interest” is sometimes a loose term. And we want you to understand how we have seen it applied.
At CrowFly, we have had customers sell their structured settlements to help pay for their daughter's dream wedding. And, of course, as a parent, that might be a high priority. But they also had to show a court that they thought through how they will afford rent and bills in two years, five years, ten years -- after they sold the payments awarded due to tragedy.
We have had customers buy cars. But not because they wanted a car to show off. Rather, they needed a safe vehicle to transport their kids and to get to work. Without the car, they would not be able to keep their job to pay the bills.
It all comes down to this point: It’s a bad idea to try to get money in your pocket without having planned out how you will spend it and how you will make up for the lost income in the future.
There are lots of reasons to sell a structured settlement that courts may agree are positive. Some examples might be:
- You’re ready to buy a house, and you have enough money left in future settlement payments to purchase one in full. Or, you’re looking into a mortgage you can afford on a monthly basis, but you do not have enough money for a down payment. (Note: You can sell some of your future payments to get just the right amount of cash you need. Just try to avoid selling some now and then deciding to sell more later.)
- You want to get a college education to improve your earning potential.
- Your car was totaled and you do not have the money to buy a new car, but you need transportation to get to your job.
- You want to clear your debt, like your student loans or credit card debt.
- A family member passed away suddenly, and you need cash to pay for funeral and burial expenses.
- Someone was injured, and you need cash to pay for medical bills.
In each of these situations, there still may be other ways to get the money you need. It is very important to consider all sides of selling your structured settlement. Are those future payments providing financial security that you will miss? Could you take out a loan to buy the house or the car or go to college? Speaking with a financial planning expert can help you weigh all your options to determine if your structured settlement is really the best way to cover your immediate needs.
It’s important to avoid selling your future payments without having planned out how you will spend the money and make up for the lost income in the future.
If you’re interested in understanding your options for selling your structured settlement, give us a call at 833-CROWFLY. Our team emphasizes education and informed decisions; we never push a person to sell, but are here to help you get the best deal if you decide that is right for you. Call us today for a free, no-obligation conversation about your future.
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