Money Management

4 Mistakes Made With Structured Settlements

If you have been awarded a structured settlement through divorce, a lottery winning, a legal suit or as a result of some other circumstance, good for you.  Structured settlements can be a nice little source of income and even take into account the person paying them – insomuch that they don’t have to pay everything up front.  If you need the cash from a structured settlement right now however, these payments that have been set up to take place through time, probably don’t suit your current needs. That’s where structured settlements fall short.  

There are companies however that will buy your structured settlement from you for a predetermined amount of money thereby possibly relieving your financial situation.  It is vital that you research the company to whom you sell your structured settlement. Here are a few things to avoid. 

4)LEAPING BEFORE YOU LOOK

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 If you haven’t at some time in your life received the advice to ‘shop around’, you must have been living underneath a rock somewhere.  Surely your parents told you this and every financial advisor in the world says the same thing.  Never settle for the first offer… always, always shop around.  There are numerous companies out there willing to purchase your structured settlement.  Make sure you don’t go with the wrong one.

 3) NOT CONSIDERING A PARTIAL BUYOUT 

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If you don’t need the entire lump sum right off the bat consider having the buyout company purchase only what you need right now, leaving the rest of the structured settlement as monthly payments.  This can provide you with extra money every month, until of course the final payment amount is met, that you wouldn’t have ordinarily had.  You’re basically only taking what you need and leaving the rest.  

2) NOT SIGNING ON THE DOTTED LINE 

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Two things should be considered, at the very least, when having your structured settlement purchased.  Never do anything without a contract and don’t be rushed into anything.  Make sure that the contract is complete and applicable to your specific agreement.  Also, a company that is rushing you should set off all sorts of bells and whistles in your mental warning system. 

1) BLOWING ALL YOUR MONEY RIGHT OUT THE GATE 

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This is especially true if you get your lump sum all at once.  Blowing that money on something frivolous and short-lived is going to leave you with an empty pocket and possibly even more expenses than you had to begin with.  Don’t make the fatal mistake that many lottery winners have made. 

The right structured settlement purchasing company will let you know how long you will have to wait for your money.  These types of agreements usually find their way to you within 6 to 8 weeks after the agreement has been completed.  The company now takes over receipt of the structured payments, but you in return get a cash award all at one time.  

By using your favorite search engine and entering the words cash for annuity payments you should be able to find a company that can do this for you. What’s even nicer is if you can get all of the company that will find the best deal for you, since there is obviously more than one company out there involved in this type of transaction.  You want the best rates after all and the best deal.  You want a reputable company, not some fly by night Johnny-come-lately.  All of this said, remember to take care that you don’t fritter away this found money. 

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