Should You Consider Selling Your Structured Settlement Payments?

A structured settlement is a type of tort awarded in a civil settlement. Instead of the award being paid all at once – it is paid in chunks over time. In the instance of someone declaring bankruptcy, this can be a great way for the plaintiff to obtain justice and for the defendant to have more liquidity for paying off the damages ordered by the judge. When it comes down to it, though, there may come a time when you are ready to receive the entire payment. You may have mounting debts or immediate expenditures. However, you may want to wait to sell your structured settlement, because it may not be the best time. Here are some ways to know if you should sell your structured settlement payment.

  1. Sell your structured payment only in the instance where you are in dire financial straights. It isn’t always a good idea to sell your payments, because you may not get the best deal. It is usually advised to only sell your insurance in the instance that you really need the money.
  2. Wait until the federal interest rate has risen – your payments may not be worth that much. In some cases, you may want to wait until your structured settlement is worth more money. It may take a few years for the interest rates to rise. Once that happens, you can sell your structured settlement for more money. If the interest rate is low, you may not get the best deal and it probably isn’t a great idea to sell your settlement.
  3. How much debt do you have – if you only have a few months left of a structured settlement, it may not be worth it. If you have ten to fifteen years of a structured settlement coming your way, you may be able to get a nice lump sum for your future settlement payments. However, if you only have a few months of your settlement left, selling it may not be smart. You may want to just wait for your last few settlement payments and cash out the account.
  4. Realize that you may make less money by cashing out. It is important to consider your return if you sell your settlements. In most cases, the long-term reward won’t be as big as it would be if you just keep your settlements coming in. Ideally, you want to work with a company like the Dolphin Asset Group to get the biggest cash payout for your structured settlement. This is exactly why doing your research about the financial group buying your settlement is so important.
  5. Understand that it may take a while for the payment to come through – it won’t happen over night. On top of everything, you also want to consider how fast the payment will come through. In some cases, you may want to seek a loan or microloan. Going through the process of selling your structured settlement could take multiple months and there is a lot to prepare. In the end, you want to be realistic about how fast you want or need a cash injection.