Are You Having Financial Trouble?
If money is tight but you have a structured settlement, it can feel like the most frustrating thing in the world. You know you have money coming in. But the promise of a future settlement check doesn’t solve the problems of today.
That’s where companies that buy structured settlements come in. By working with one of these companies, you get a way to liquidate the money you need. As they say, a bird in the hand is worth two in the bush.
That said, you shouldn’t necessarily burn the bush down in capturing that single bird. Some companies won’t tell you this, but you don’t have to sell all of your payments. Selling only a portion of them helps you get what you need while protecting your future.
All told, if you have a structured settlement and you’re having financial trouble, it may be time to explore selling some of your payments.
To help you decide if this is right for you, we’re laying out a few common scenarios we see when folks approach us looking for financial help.
Ways you could use the money
When you sell some or all of your payments, you get money you can use however you want. We recommend using it as strategically as possible. If you just stick it in your checking account, there’s the temptation to blow through it.
Instead, we only recommend selling payments when you’re in a financial pinch and have a good plan for using the money. You might apply it toward:
Putting kids through school
With the school year right around the corner — or already underway, in some areas — a lot of parents are feeling the strain of the new year’s tuition. Whether your kids are in private school or they just started college, this added financial burden can take its toll. That’s particularly true if you were already feeling financially tight before this new expense hit your books.
Selling payments to cover education gives you the best of both worlds. You can set your children up for educational success, and without excess stress, you can actually enjoy giving them that experience.
In fact, you don’t only have to explore this option for your kids. If you’ve always wanted to go to school to get a degree to advance your career, the pay raise from that education can more than make up for what the payments you liquidate.
Paying off debt
Debt is stressful. Your credit card balance might feel like it’s tightening around you or you could feel like you’ll never shovel yourself out from under student or medical debt.
If you’re currently facing a large chunk of debt — and particularly if you’re paying interest on it — your payments can help you chart a path forward. Selling enough payments to fully cover the debt eliminates it from your life. Even selling some payments to lessen the load can buy you the breathing room you need.
If you do sell payments to cover debt, make sure you develop a plan so you don’t find yourself in this situation again. Good money management habits go a long way toward helping you make the most of your new life with less debt burden.
Avoiding high-interest loans
With interest rates high right now, if you need something that would normally require you to take out a loan — like a new car — things can look dire. The high interest rate environment we’re currently in makes a purchase daunting.
Using your settlement can help. Whether you sell enough payments to avoid the loan entirely or you sell a smaller portion to make your loan smaller, you’ll protect yourself by paying less in interest through the years.
Planning for the holidays
As the weather cools off, your stress about the expenses of the upcoming holiday season might be heating up. Selling some payments can help you enjoy what should be a special time of year with your loved ones.
Thriving today while protecting tomorrow
All of this said, you shouldn’t view selling your payments as a quick fix for financial woes. Your payment schedule is designed to provide for you through the years, and you don’t want to get rid of that unless you absolutely need to.
Talk with our team. We have experience helping people strategically sell only what they need in order to manage their financial situation today while protecting their tomorrow. If you want to sit down with someone experienced who can help you explore your options, contact us today.
