Structured settlement transfer is it a good idea?
Structured settlements are future monies that have been awarded to you or a family member as the result of an accident or some other incident that caused an injury or life changing event that a court has deemed a party responsible and you are to receive monetary compensation for your loss or injury.
These payments are usually spread out over time and can be paid out in the form of lump sums, monthly payments or a combination of both.
There are any number of companies that are willing to take your future payments and pay you a discounted cash value for the payments now rather than in the future. This comes at a price so it is well advised that you do your homework and find a company with a good track record for handling these transactions and one that will provide you with the best rate possible.
You are not obligated to transfer all your remaining payments. You have the option of transferring a portion of your future monies it is your choice.
Everyday something happens to someone which requires they need to access funds now instead of waiting. You could have an emergency that requires immediate home or auto repair, or you may want to start a new business or pay off debt. There are myriad legitimate reasons to have the ability to use your money now. Having the ability to access these funds now rather than later, makes sense to a lot of people. It gives you the ability to resolve issues that need immediate attention. It also allows you to take advantage of the change in the housing market and possibly purchase a new home or look into starting your own business with up front capital.
So is a structured settlement transfer a good idea? Depending on your individual situation, it could be a very good idea. Just remember the key is doing your homework and have a set organized plan for the use of the funds.
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