The Benefits of Selling Your Lottery Annuity
The winner of a lottery will often receive winnings in the form of an annuity. Winners typically wait 20 to 30 years before the final payment arrives. This can become a problem for individuals with large financial burdens or ambitious business plans. The best way to get cash now is to sell part or your entire lottery annuity and obtain a lump-sum payment.
Debts and Major Purchases
Many people have large debts in the form of student loans, mortgages, medical bills or car loans. With interest rates of up to 30 percent, credit card debt can become particularly burdensome. Lottery winners may quickly become free of these financial burdens by selling their lottery annuities. Debt reduction improves credit scores as well.
Large sums of cash also allow people to buy homes, start businesses, attend college and make investments. Although it’s possible to borrow money for each of these purposes, interest payments will greatly increase the total expense. For example, a 15-year student loan for $20,000 will cost nearly $31,000 at 6.3 percent interest.
The sale of a lottery annuity provides an opportunity to avoid paying thousands of dollars in interest on current and future debts. It also limits the effect of inflation on lottery winnings. Most retail prices have doubled or tripled during the past 20 years; your annuity payments lose a significant portion of their value as time passes.
Lottery Annuity Sales
To gain the benefits of selling a lottery annuity, you will need to find a trustworthy buyer. This will require some in-depth research. A number of companies specialize in buying annuities from lottery winners and other individuals. Many of these firms will gladly develop custom payment plans to suit your financial needs.
One option is to sell part of your lottery annuity and continue receiving payments on the unsold portion. You may also exchange the entire annuity for a single lump-sum disbursal. Some companies offer an alternative plan that restructures your monthly lottery payments. This will enable you to receive more cash within a shorter timeframe.
Don’t wait decades to receive your full lottery winnings. You can get cash now by selling the annuity to a reputable company. This is an excellent way to gain more control over your finances and become free of debt. If you plan ahead and spend the money wisely, this decision will help to ensure your financial security for many years to come.
Stephen Craig and his team have written for hundreds of blogs. Follow him @SCraigSEO.