The ABC's of Selling Structured Settlement

Selling Structured Settlement

Many people i have met are still unsure or skeptical of selling their structured settlement for lump-sum cash. When i ask them what is the fear in selling their structured settlement they reply; they have little knowledge of what is proper compensation for selling their settlement and that they need to know the most trustworthy and reliable company who provides good customer service and does not hide any hidden clause deep within those fine lines. So before i advise them on what to do to sell their settlement i ask them a few questions;

1. Why do you need to sell your settlement?
Almost 99% of the people seeking to sell settlement gives me the same set of answers, which tells me life is similar everywhere and many people from many different countries are going through the same financial ordeals. The number one reason why people are willing to sell their settlement is to actually pay a large bill. That large bill could range from a medical bill, tuition or mortgage. The second reason i get is that they are going to make an expensive purchase which is best done by one large cash payment. This expensive purchase can be the buying of a home or car. The third reason is that they are starting a business and need start-up cash or they have discovered a more lucrative investment and need cash to invest. There are many more reason but these three are the major ones. So they need cash and they need it now.

What to know before Selling Your Settlement
You cannot just dive in blind on some advertisement that pops up on television about easy selling settlement. You need to know the value of your settlement and actually weigh in on the feasibility of selling your settlement. Sometimes selling may not be the best option for you. It is in your best interest to know the value of your settlement say in the next 10 years and compare that value to the offered lump sum to see how big a lost you will be taking. The reason why i say loss is that when you engage a company in selling your settlement, the company buys that settlement from you to resell in order to make a profit and to make an attractive offer to the second party buyer. So you see why it is good to know the true value of your settlement so that when an offer is made you will know if it is a fair one or a complete rip off.

Getting Lump Sum For Cash Settlement

Selling Part of the Settlement
Because you need lump sum and need cash now means that you need to sell all of your settlement. Companies are willing to buy part of your structured settlement once it is substantial enough. So say you have a payment of $100, 000 dollars in settlements. You can actually engage the company in selling them half of that settlement and continue to receive structured payments for the other half. You have to remember that once you sell a portion of your settlement, adjustments will have to be made in your structured monthly payments.

So it is really quite simple, just follow the three step approach and you will be getting a good deal when selling your settlement.

1. Calculate The true Value of your settlement
2. Find the best and most reputable company to sell your settlement to
3. Sell all or part of your settlement.