Receiving a series of payments over the long-term may seem like a hassle and you may be dreaming about what you could do with all of that money if it were in your bank account right now, in one big, lump sum. Whether you have bills piling up because you aren’t able to work due to the accident that brought in the structured settlement, or if you just would like having more spending money than you do right now, there are a couple questions to ask yourself before taking a cash option for structured settlements.
You must think hard and answer the questions honestly to determine whether taking the cash upfront is in your best interest or may be the wrong move. Keeping the settlement payments is sometimes the best option, so be open and as honest with yourself as possible 소액결제 현금화.
Is it worth it?
Is your immediate need for the cash worth the amount of money you will be giving up? Companies who buy-out structured settlements have to wait long-term to get all of their money back and earn their profit, but you are giving up a portion of your money in the agreement. In order for it to be worth providing the service, they will reward you less than the amount of the total payments, so in the end they come out ahead.
Whatever you plan to spend the money on must be worth the amount of money you will lose in the long run. If you have a serious medical condition, are unable to work, or have other bills that must be paid immediately, then it may very well be worth the amount of money you have to give up in order to meet those needs right away. This is especially true when you could lose your home or take a serious hit to your credit rating if you do not clear up a debt quickly.
If on the other hand, you have your eye on a new vehicle or some other expensive item, or have no particular use for the money right now, you may want to keep your payments coming in and receive all of the money owed to you.
Can you adequately manage a large sum of money?
Most people who receive a large, cash settlement end up blowing the money rather quickly and having little to nothing to show for it in the end. They regret their decisions along the way, but mostly the decision to take the cash option for structured settlements. It’s a tough position to be in, looking back and realizing that they could have had payments still rolling in.
If you are not due a very large sum of money this may not be a huge concern, but in the case of a rather big chunk of money, it is crucial that you honestly evaluate your ability to control your spending. If you are not sure, think back to your past behavior. What is your inclination on payday? Do you run right out to the mall or do you go home and pay the bills and consider what is leftover?
If your habit is to run out and spend any amount of money you receive on a regular basis then it’s likely you’ll do the same with a large sum of money. You can also ask friends or relatives to honestly evaluate your ability to properly manage money, since they may see your behaviors very differently than you do.
While it may seem that getting the cash option for structured settlements would be preferable to anyone, it is not always the best option. Receiving a large sum of money is a great thing, but when you are also giving up a fair share of money, it becomes a serious issue that one must think through completely.