The Lowdown on Getting Cash for a Structured Settlement

If you are currently receiving payments from a structured settlement and are not happy with the procedure in which you are getting paid, there may be a way to cash out your money and move on with your life. Often, structured settlements are designed to better suit the person writing the checks instead of the person that was really wronged to begin with. However, you do not have to keep living with this injustice; here is the lowdown on getting cash for a structured settlement.


First, it is important to understand the process of selling a structured settlement so you really know what you are getting in to. No, there are not any dire consequences of getting cash out of your settlement, but you should be aware that you are actually selling the asset. Therefore, you will be paid a lump sum amount to give the payment rights to someone else, usually a company which deals in purchasing these types of settlements on a regular basis. What is the catch, you may be asking?


While it is not really a catch, so to speak, you should be aware that you will not usually get the full face value of your structured settlement when you cash it out. Companies that buy structured settlements make money by providing a valuable service to people in need of their money now instead of waiting for months or years. However, in exchange for this service, they usually make a profit from the purchase, meaning they pay you a lower amount than the full payout will be over time. While this may sound unfair initially, there are a few considerations to keep in mind. What is not having to wait for your money worth to you? How much phantom income would you sacrifice to have a lump sum of money when you need it? After answering these questions, you may very well decide selling your structured settlement is the best option for you.