When Should I Sell My Payments?
Your structured settlement was designed specifically to provide financial security and reduce “dissipation” risk (spending all your money too quickly). As such, any decision taken to sell structured settlement or life contingent payments should be carefully considered and discussed with an independent professional advisor.
There are life circumstances that call for an immediate expenditure of money, such as an unexpected visit to the hospital or losing one’s job. People often turn to credit products such as credit cards or payday loans when they need financial help, but often fail to appreciate the risk they are taking on when dealing with these risky products.
Credit card companies, even for their best customers, can charge upwards of 20% on unpaid balances. Even if you are successful in making the minimum payments on your credit cards, if the unpaid balance grows over time so will the amount of the monthly interest payments you are responsible for. And if you fail to make payments consistently, those companies can sell your debt to unscrupulous collections agencies that will call you and your family incessantly.
Getting a payday loan could turn out to be an even poorer decision. While tempting because of immediate access to cash and the small dollar amount, these companies rely on repeat business and over time, the finance charge or interest payments on these credit products could sum up to an astronomical amount.
Selling your structured settlement or life contingent payments may be a better decision than racking up high interest debt. Depending on the timing and structure of the future payments, discount rates could be as low as 6%! This transaction also won’t affect your credit. Once you understand how your payments are valued, you can come to a decision about the right thing to do. At LCpayments.com, we are focused on providing a customized solution for your specific needs and will take the time to understand your goals. Call (833) 760-4006 and find out for yourself!