Many Americans dream of winning the lottery. Unfortunately, the reality is never quite that simple. Plenty of lotto winners have found themselves tangled in a web of legalese, contracts, and fine print so small it takes a lawyer with a microscope to read it. Even people who win huge lottery lump sum payouts struggle under mountains of paperwork, tax forms, and red tape.
If you’re struggling to choose between a lottery lump sum payout or an annuity, or considering selling an annuity settlement, then it’s crucial to carefully weigh the pros and cons. So why exactly do so many Americans choose to sell fixed annuity payments or opt for lottery lump sum payouts in the first place? Here are the top reasons Americans choose lottery lump sum payouts, or to sell structured settlement payments:
1. Medical Bills
Although Obamacare changed the way we pay for healthcare, 64 million Americans (35% of the population) were struggling to pay off their medical bills in 2014. Plus, about 20% of credit scores were negatively affected by outstanding medical bills. Selling lottery payments or getting cash for annuity settlements allows families to finally get ahead of their medical debt.
2. It Takes Money To Make Money
In the popular imagination, lottery winners retire on a beach somewhere to sip cocktails until the end of their days. In reality, most lottery winners choose to continue working. In fact, far from retiring, many people dream of workingharder, or maybe we should say, working better. A lottery lump sum payout can allow you to finally be your own boss by starting your own company. Unfortunately, it really does take money to make money.
The average cost of starting a small business in the United States? $30,000.
3. Student Loans, Auto Loans, Credit Card Debt
In 2015, Americans owe a ridiculous amount of student loan debt, about $1.3 trillion, in fact. Plus, outstanding auto loans climbed to $943.76 billion this year as well. The average U.S. household owes $11,244 in student loans and $8,163 in auto loans. Choosing lottery lump sum payouts or selling annuities allows them to get rid of the debt hanging over their head.
4. The American Dream
Owning your own home has always been a big part of the American dream. Unfortunately, structured settlements and fixed annuity payments can make it hard to own your own home. Instead, you could spend 30 years paying off a mortgage. And since the average U.S. home costs $272,900 and requires an upfront cash payment of up to 20%, not everyone has the luxury of waiting for annuity payments.
5. Treat Yourself!
paying off loans is crucial, not just for your financial health, but for peace of mind. Being debt free really does improve your quality of life. And putting a roof over your family’s head is hardly a luxury expenditure. But never let anyone make you feel bad about spending money on yourself. Everyone deserves to be happy and enjoy themselves from time to time, and we’re pretty sure the U.S. constitution mentions the “pursuit of happiness” for a reason.
Americans work harder than almost anyone else on earth, and still live paycheck-to-paycheck. Choosing a lottery lump sum payout, or getting cash for structured settlements lets so many Americans live better.
Isn’t it time to start living the life you deserve?