Selling Your Annuity To Cover Home Payments

Purchasing a home is something that often symbolizes becoming a successful adult; it means you have a stable job, you have a financial plan for the future, and you might even have a family. Whether you’re 25 or 55, buying a house means that you’re comfortable in your environment and you’re confident that you’ll settle in.

But consider this: As of October 2015, the average cost of a new home was $366,000. Even a house for a small family can be very expensive, and it’s not always easy to predict how much money you’ll have to pay in a down payment.

Although taking out a mortgage is always an option — and it’s something that most homeowners do — you could end up paying 5%, 10%, or 20% of the total sale price in a down payment for a mortgage. This 15% difference can mean the difference between purchasing a new home now or waiting until you’ve saved up more money. And even with a mortgage, you’ll be carrying that debt over your head for a long time. The average household in the U.S. today owes about $165,892 on mortgage payments.

One solution which many homeowners have found is to sell their structured settlement payments. The average structured settlement payout is $324,000 — just slightly under what the average new home costs today. Although a monthly payment of $500 may be enough to cover basic items and medical expenses, it’s not even close to what you’d need for a down payment on a new home. Cashing out your structured settlement too early can result in penalty fees as high as 10%, and that’s a lot of money paid to the insurer for absolutely no reason.

Selling your structured settlement payments can be a great way to avoid paying those fees while still being able to invest your money in any way you see fit. Maybe you’re already looking to buy a new house; maybe you have another investment in mind! However you spend your money, you can be confident that you’ve made a good decision.

selling your annuity

Keeping Your Head Above Water: What You Should Know About Debt in the U.S.

monthly expenses

Selling your annuity to cover monthly expenses may not sound like the best financial strategy, but consider the facts. The average U.S. household has a lot of debt. It’s tough to make ends meet nowadays, but paying off your debt fast can help you get ahead and keep your head above water.

Here’s what you might not know.

Families are stretched thin
Families are stretched pretty thin nowadays. More than 40% of U.S. families — that’s about two in five — spend more than they earn, falling deeper and deeper into debt. Worse, 64 million people, or about 35% of the entire U.S. population, says that they have trouble paying bills or were stuck trying to pay off their medical debt in 2014.

People can’t keep up
As people struggle to just pay their monthly expenses, they fall deeper and deeper into debt. The average U.S. household has 13 payment cards, while the average U.S. adult owes about $3,761 in revolving credit to lenders. The average U.S. household also pays about $950 in interest each year. This means that families’ financial plans are stagnant. Essentially, most people are trying to bail their boats out and stay afloat, let alone make it to shore.

The interest just keeps getting higher
As families fall behind, they get more and more each debt. Studies show that debt figures all across the country are rising. Between 2014 and 2015, outstanding student loan debt climbed from $1.21 trillion to $1.3 trillion, while outstanding auto loans grew from $866.44 billion to $943.76 billion. These statistics show that the nation as a whole is falling more and more into the hole.

All things considered, selling your annuity to cover your monthly expenses and help pay off some of your debt is a most prudent thing to do. If you have any questions about selling annuities, feel free to share in the comments.

Why You Should Sell Your Structured Settlement or Annuity Before the Holidays

Just how much money have you been spending on your holiday shopping — and how much more are you planning to spend before the 2015 holiday season is over?

If you’re like most American consumers, you’ve already spent a small fortune on gifts and supplies for the holidays (and it wouldn’t be surprising if you put a lot of those charges on one of your credit cards). According to a recent Gallup poll of consumer spending habits, the average American adult will spend around $830 on gifts for others this year.

Naturally, if you have pets, those “others” also include the furry and fluffy family members in your household. Dog owners and cat owners alike love to shower their pets with gifts during the holidays too; 63% of dog owners buy Christmas presents for their dogs, and 58% of cat owners buy presents for their cats (likely to distract their felines from climbing the tree).

While these presents might be worth the $830 price tag, they also contribute to the growing debts of consumers, too. Fortunately, if you currently own a structured settlement or an annuity, it might just be the perfect time to sell your payments and cover the costs of the holidays.

The average structured settlement payout is $324,000, and it only takes about eight to 12 weeks to process your annuity, plus an additional 60 to 90 days after a judge approves the sale in order to start receiving your money.

That’s more than enough to cover the costs of your holiday shopping, and you’ll be able to pay off a lot of other debts you may have racked up. Your bank account and credit card balance won’t be hurting for very long after the holidays if you get started with the process now! In the meantime, you can begin 2016 on a great note by brushing up on your financial management skills, and you can rest assured that you’ve made a great decision by selling your annuity or structured settlement (after all, 92% of claimants are satisfied with their decision to sell).

If you sell your payments before the holiday season ends, you might even have enough time to buy a few extra gifts — and don’t forget an extra bone for Fluffy or a catnip toy for Patches!

why you should sell your structured settlement

Annuities and Structured Settlements: By the Numbers

annuityThe cost of living these days is climbing higher and higher each year, and it’s the reason why so many people have begun choosing to sell their structured settlement payments and their annuity payments. Don’t believe it? Well…

Looking at these numbers, is it any surprise that it’s so difficult to manage your finances?

  • 13: The average number of payment cards (including credit and debit cards) that an American household has.
  • 40%: The percentage of families who spend more money than they earn each year.
  • $3,761: The average amount of money that each American adult owes in revolving credit to lenders, including around $950 in interest payments annually.

…Going to school costs more than it ever has…

  • $31,231: The amount of money that the average private university charged for a year of tuition during the 2014-2015 school year.
  • $11,244: The amount of money that the average American household still owes in student loan debts (and yes, this includes everyone from recent college grads to people who have been paying back their student loans for decades).
  • $1.3 trillion: The total amount of student loan debt that Americans still have — as of 2015, at least.

…And if you get sick or injured, forget about having any money left!

  • 64 million: The number of Americans (which equates to around 35% of the national population) who say that they’ve struggled to pay off medical bills as recently as 2014 — even if they have insurance plans.
  • 20%: The amount of credit reports that are hurt solely because of unpaid medical bills.
  • 68%: The percentage of personal bankruptcy cases that are caused by medical bills.

The truth is, if you’ve got money invested in an annuity (including a lottery annuity or an annuity settlement), you probably aren’t doing yourself any favors. It’s estimated that there are around 34.8 million individual annuity contracts in place these days, which results in more than $2.58 trillion of funds that just sit around and can’t be accessed.

This is all well and good if you have plenty of money saved up in the event of an emergency, but the majority of people just don’t have enough cash on hand to live comfortably and live without debt. Selling your annuity or structured settlement payments isn’t “an easy way out” — it’s a way to use the money, which is already yours, by the way, so that you can maintain the quality of life that you want.