What You Should Do Immediately After Getting Cash for Structured Settlements

getting cash for structured settlements

When you find out that you’ll be getting cash for structured settlements, your mind may quickly wander to the many ways you could spend all of that money: You could buy a fancy new car, buy your significant other something pretty, or go on an expensive cruise!

But then, reality sets in. You have bills to pay and a life to lead. If you’re the recipient of a substantial structured settlement agreement, here are the first practical steps you should take to manage your new financial situation.

  1. Understand how it will impact your taxes.
    Boring? Yes. Important? Incredibly so. Depending on the nature of your case settlement, your reward could be subject to income taxes. The first thing you should do is hire an accountant to explain your options.
  2. Pay off your debt.
    Whether you have medical bills or school loans, the best way to provide a better financial future for yourself is to pay off that debt as quickly as you can to avoid accruing interest. An average household spends $6,658 on interest payments every year, so it’s worth your while to shave off debt with that money burning a hole in your pocket.
  3. Invest.
    There’s the old saying, “You have to spend money to make money.” Getting cash for structured settlements could be your ticket to a whole new future, so long as you know how to do it. Invest in education. Invest in launching a new company. Be smart about where and how you spend your money.
  4. Donate.
    Making a donation to a charity is a way to give back to the community and spread your newfound wealth. Remember that for every annuity settlement won, there are plenty of other people who weren’t as fortunate. Do what you can to help others in need and feel free to give yourself a pat on the back while doing it!

If you manage your money wisely, there will be plenty of opportunities throughout your life to treat yourself to small indulgences. Rather than spending all of your settlement money the moment it hits your bank account, think twice about how that cash can be spent for something bigger or better than a wild night on the town — something like your own future.

What to Do When You Need to Get Settlement Money Now

get settlement money now

If you’re the recipient of a structured settlement annuity, chances are you didn’t get there by choice. Structured settlement agreements are often the end result of a long, drawn-out, and even painful process. Perhaps you were involved in a car accident, a workplace injury, or a class action lawsuit. No matter the cause, one thing is for sure: moving forward with your life is the most important step in recovery.

However, that’s not always easy after a major trauma or an incident that puts you out of work for an extended period of time. The end of a long legal process does not mean the end of your stress. After your lawyer collects her fee and moves on to the next client, you may be stuck with a mountain of medical bills to pay. You might need to find ways to reduce debt after using up your credit to cover upfront expenses. You might need to start a new career altogether — in which case, you might be thinking about going back to school.

Any of these expenses might be more manageable, you might think, if you were simply able to get settlement money now, instead of having to wait for the next annuity paycheck. At the end of 2013, for example, there were an estimated 34.8 million deferred annuity contracts in circulation worth a combined $2.58 trillion. That’s a lot of money that could be helping individuals put their lives back together.

Luckily, there’s good news. You can “sell” your structured settlement agreement to a trustworthy financial institution in order to get settlement money now.

It’s simple: The institution will take on your structured payments, and in return, they’ll give you a lump sum up front so that you can spend your money any way you choose. You can also choose to sell only a portion of your settlement. This way, you can get the amount of money you need to cover your expenses, while still receiving the steady support of an annuity check in the mail.

If you’re ready to get settlement money now, contact us at 123 Lump Sum today. One of our experienced representatives can walk you through the process to find out if selling your structured settlement might be helpful to get you back on your feet.