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.

Structured Settlement Annuity FAQs

annuityIf you’ve been injured and another party is at fault, you may rightly decide to take legal action. Both parties may then decide on a structured settlement agreement, rather than a lump sum payout. These agreements can be complex and confusing, and if you decide to sell your structured settlement annuity, you may be overwhelmed with your options or not know the correct steps to take. Here are some common questions about structured settlements and annuities to help get you started:

  • What are structured settlement annuities?
    There are many types of annuities, which refer to insurance contracts that will provide payments over time instead of all at once. With a structured settlement annuity, an injured person receives regular payments over a long period of time. The length and payout periods for annuities can vary, but two of the most common are those that pay out over the course of 25 years, and those last until the person’s death.
  • What are some benefits of structured settlement annuities?
    One pro is that these agreements are tax-free. Another is that they can provide income for life for the recipients, while helping them manage their money responsibly.
  • What are some negatives of these agreements?
    One drawback is that the recipient never actually owns the agreement; that right belongs to the insurance company who provides payment. If the insurance company funding the agreement goes bankrupt, then the injured party may never receive the money they were promised. Another downside is that, while the purpose of an annuity is to cover a person’s income for their lifetime, depending on the settlement terms, the monthly payments may not make enough of a difference to improve that person’s life. This is often the case if that person is in a significant amount of debt or has a large number of medical bills to cover.
  • Why might I want to sell my structured settlement?
    Selling a structured settlement annuity can be beneficial for those who need to pay off student loans and credit card debt. If you sell your structured settlements, you could also make an investment in your future by attending college, buying a house or a car, starting your own business, or travelling around the world. Selling your settlement can allow you to do things you never thought possible with your budgetary concerns, and it will free you from feeling like you’re at the mercy of an insurance company. You can often live much more comfortably than if you were on a fixed income, and the payout will allow you access to a future you might not otherwise have.
  • If I decide to sell, how long will it take to get my money?
    Every case is different, but we always work with clients to ensure they receive their money as quickly as possible. The process of selling your settlement can take up to 90 days, given that it has to be legally finalized by the court system. However, we can work with you to secure an advance in order for you to meet financial obligations.

If you have a structured settlement agreement and want to make a substantial investment in your future, you should consider selling your annuity. Contact us today to find out your options and see how easy it is to receive the money you deserve.

Structured Settlement Annuity Benefits and Drawbacks

structured settlement annuityImagine that you’re offered a choice. Sitting across the table from you are two piles of money. One is very big, and you can take it all home with you today. The second pile is pretty small, but you can come back next month to get the same amount — and every month thereafter for as long as you want. Which deal do you take?

Many people who receive lottery winnings or are granted settlement money after an injury or accident are faced with this exact scenario. Most people would instinctively grab for the larger pile of cash. Why wait around when you can use that lump sum to reduce debt or buy a new car?

Unfortunately, structured settlements, annuity settlements, and lump sum payouts are not quite that straightforward. There are certain strings attached to each kind of deal that every claimant should know before making their final decision.

In fact, structured settlement annuity benefits often outweigh their disadvantages. Here are some of the ways that taking that smaller pile of cash might be smarter in the long run:

  • It’s tax exempt. In most cases, the money you receive from a structured settlement or annuity plan won’t be included as taxable income. That means more of your earnings stay right in your pocket.
  • It keeps you honest. Many people don’t know how to budget a sudden windfall of cash in a way that’s sustainable. Statistics suggest that 25-30% of accident victims use up all of their settlement funds within two months of recovery, and 90% exhaust the money within five years. If you’ve suffered an accident that prevents you from working, how will you survive financially if your dry up all of your funds too quickly? A structured settlement plan ensures long-term security and a steady stream of income.
  • You always have the option to sell. Structured settlement annuity benefits are nice, but sometimes you really doneed a chunk of cash to pay for unanticipated medical expenses, to put a down payment on a house, or to send a kid off to college, for example. You can sell all or part of your structured settlement at any point in its duration to a financial institution for a lump sum payout. This gives you the flexibility to use your money as you see fit, exactly when you need it.

So which pile of cash should you take? The answer is ultimately up to you. The structured settlement annuity benefits might be appealing, but for some people — especially minors — taking the lump sum to invest the money yourself can prove more rewarding over time. Consult with a lawyer, financial planner, or certified accountant to weigh your options and decide which deal is right for you.

3 Easy Ways to Reduce Your Debt

reduce debtIf you’ve found yourself in debt, you certainly aren’t alone. Nearly one in five Americans from ages 18 to 24 feel they are in debt hardship. Dealing with financial challenges can be particularly stressful and overwhelming, but there are simple things you can do to help reduce debt. Here are three ideas to get you started:

  1. Cut back on expenses and shop smartly
    The little changes you make can really add up. You could downgrade or eliminate your cable package in exchange for a popular (and less expensive) streaming service. Use cash-back services and coupons when doing your shopping. Skip the extras when out at a restaurant, and be sure you know the difference between a necessity and a desire. Even programming your thermostat and unplugging appliances can help with your energy bills every month. All of these saving strategies mean that you’ll be able to make more progress in paying off your debt every month.
  2. Save loose change
    You probably don’t give a second thought to the coins in your pocket or wallet, but you’d be surprised how much you could actually have in your piggy bank! Saving your spare change in a jar seems like an antiquated idea, but it’s a great way to save without feeling too many of the effects in your daily life. At the end of the year, you can take that change to the bank and put it towards your debt; it may not seem like much, overall, but that’s money that you probably didn’t even realize you were saving!
  3. Sell your annuity
    If you’re the recipient of an annuity, you may think your only option is to wait for your yearly check. However, you can sell your annuity and receive a cash payout. In the United States, around 35% of the population said they had trouble paying their bills or were stuck paying off medical debts in 2014, and outstanding student loan debt increased from $1.21 trillion to $1.3 trillion in one year, from 2014-2015. If you are struggling to pay medical bills, student loan debts, or credit card payments, selling your annuity is a great option to help relieve your financial burden.

By making minor adjustments and selling your annuity, you can easily reduce debt in your life. Contact us today to find out how you can quickly get cash for an annuity.

How Long Does it Take to Receive a Settlement Check?

how to get money from a settlement

Congratulations! Your personal injury case has been settled and you are awaiting your award. But what’s next? You might be wondering how to collect your settlement or how to get money from a settlement now.

Unfortunately, it’s not always a quick process. There are several factors that will affect your payout as well as several steps that must be completed before you can get paid.

The Release Form
The first step in receiving your check is to sign a release form that sets forth the settlement terms. The release form will usually state that you will not pursue any further payments from the defendant for the specific incident at hand.

The Internal Process
Some states have established deadlines by which the defendant must provide settlement funds after receiving the release form. Some states are even permitted to charge interest on the funds to ensure that there is a disincentive for the defendant to delay the payment.

Still, settlements do experience delays. For instance, attorneys may have disagreements regarding the terms of the release form, causing a delay in the creation of the form. The defendant’s insurance company may also cause a delay because of its internal process protocols.

Structured Settlements
If you have been awarded a structured settlement rather than a lump sum, it will naturally take longer for you to receive the total amount owed to you. Structured settlements are often used by courts in the following cases:

  • Severe personal injury
  • Workers compensation
  • Wrongful death

Oftentimes, structured settlements are ideal for plaintiffs because they can provide a lifetime of financial security. The money is protected from taxes, market fluctuations, recessions, and a myriad of other risks typically associated with investments. Household income has grown by 26% in the past 12 years, yet the cost of living has gone up 29% in that same time period. In other words, receiving a steady income from a structured settlement can provide stability in an ever-changing economy.

However, life happens and your needs can change in an instant. When this happens, you may want to access your money immediately.

How to Get Money From a Settlement Now
You have the right to sell your structured settlements. If you are in a financial crisis, you have the ability to use a specialty finance company like 123 Lump Sum as a direct funding source for structured settlements.

Call 123 Lump Sum today to get cash for your structured settlement and stop worrying about your finances.

Here’s What You Should Actually Do With Your Payout Lottery Winnings

payout lottery winnings

Congratulations! You’ve just won the lottery.

Or, at least, those are the words you’re expecting to hear at any minute. Sure, your chances of winning may actually be one in a gajilion, since the lotto is the most popular and widely practiced form of gambling in the United States — but, as they say, you never know.

You probably have lots of lofty ideas about how you’d spend your huge payout lottery winnings. After a soak in a champagne-filled hot tub and an overindulgence in caviar donuts, perhaps you even have some practical plans. Maybe you’ll buy a new house, maybe you’ll be making an investment, maybe you’ll find ways to reduce debt and pay off that $3,761 that the average person owes in revolving credit loans.

But in reality, people often don’t know how to handle all of that money once they actually receive lottery winnings. Take a quick search through Google to read all of the horror stories about past lotto winners who lost everything to overspending, drugs, gambling, lawsuits, or any other kind of foolish spending.

Don’t be that person in the news. Have a real plan for when you hit the jackpot — just don’t expect it to be as glamorous as you might think.

Step 1: Hire a lawyer. Yes, this is the step you should take before you even claim your winning ticket. The moment you put yourself forward as a winner, you forego your privacy rights. Media outlets will want to interview you. Programs will want you to support them. Supposed long-lost relatives will want to “catch up” with you. Get a professional on your side before you set out into this new world.

Step 2: Lay low. This is harder than it seems. Again, everyone will be clamoring for your attention (and deep pockets). While your lawyer gets your financial ducks in a row, maybe take that trip to Siberia — or some other place where no one will bother you — you’ve always dreamed of.

Step 3: Decide how to get your money. Most of the payout lottery winnings are delivered in annual increments, or annuities. The most common are over 25 years or until death. If you’d rather have your money up front, you can sell that annuity for a lump sum payment and get cash instead through a financial institution. If you want the best of both worlds, you can sell a portion of the annuity payments for an immediate lump sum.

No matter what you plan to actually do with your payout lottery winnings, play it smart. Have a plan and stick to it so that, when you strike it rich, you’ll be able to do everything you want.

Common Myths About Selling an Annuity Settlement

selling an annuity settlementSome people are skeptical about selling an annuity settlement. The thought of getting a lump sum of cash now always sounds too good to be true.

They may have heard well-meaning advice from friends who tell them to stick to their monthly structured settlement payments. They may be concerned about the security of their financial future. Or they may simply not understand the process of getting a lump sum annuity payout and think it must be some sort of “get rich quick” scam.

We’re here to clear the air. Sometimes, selling an annuity settlement in exchange for a larger sum of money can be enormously beneficial. Here are some of the most commonly heard rumors surrounding the selling process, and the truth behind these myths.

Myth #1: I have to sell my entire annuity at once.

Not true. You can sell a portion of your annuity payments, large or small, to help get you the money you need upfront. In fact, you’ll be working with a financial expert to help you determine exactly how much you should sell to get the most out of your money depending on your needs and situation. Many people opt to sell settlements at some point in their lives; at the end of 2013, there were 34.8 million deferred annuity contracts in place with more than $2.58 trillion in combined value.

That’s a lot of cash waiting to be claimed.

Myth #2: I’ll get less money in the end if I sell my structured settlement annuity now.

Not necessarily true. While there are some fees involved in selling your annuity, there are ways you can invest that money to grow your financial assets in the long run. For example, you might buy a house requiring a 5, 10, or 20% down payment on the sales price. The more you pay upfront, the less you’ll be spending on interest and mortgage payments later.

Myth #3: I won’t be able to pay my monthly bills without my structured settlement check.

Again, your finances are what you make of them. Selling an annuity settlement might be the push you need to start a business or get an education, which can lead to a higher-paying job and a better future. According to the Kauffmann Foundation, it costs an average $30,000 to launch a new business today. With that money, you could be working for yourself instead of depending on a monthly check.

Money management can be stressful, but selling an annuity settlement shouldn’t have to be. You can speak with the professionals at 123LumpSum to learn more about the process and to discuss any concerns you have to ensure that your decision is the right one for your future.

When a Structured Settlement Annuity Hurts More Than It Helps

structured settlement annuityMany times, civil lawsuits never even make it to court. That’s because in the vast majority of civil cases both parties eventually accept a structured settlement agreement that pays the defendants enough money to recoup their losses. Whether your case was the result of an accident, medical malpractice, insurance dispute, or another type of liability claim, your compensation should be all about helping you get better and move forward with your life.

It’s very common for awards from cases like these to be distributed through a structured settlement annuity, in which case you will receive small, recurring sums of money over a long period of time — sometimes as long as 20 years or more. This is a great way to ensure a steady flow of income if you’re otherwise unable to work or provide for your household after an incident.

However, there are times when those small paychecks may feel more like a burden than a blessing. Under certain circumstances, it could be beneficial to get settlement money now, rather than having to wait for that next check to arrive.

Do these frustrating hypotheticals sound all too familiar? Then it’s time to consider whether or not to sell annuity settlements.

But how do you know if it’s the right decision?

You have medical bills to pay. If you received your structured settlement annuity from an accident or injury case, chances are you still have a long road of recovery ahead of you. Pending and overdue medical bills aren’t just stressful; they can actually hurt your credit score.

As many as 20% of credit reports are damaged by outstanding medical expenses, and in turn, the interest acquired on those bills can add up, too. The average American household pays $950 in interest alone every year, an expense that could easily be eradicated by simply having the cash for structured settlement payments upfront.

You’re swimming in debt. Most people carry some amount of debt throughout their lives, but there’s debt, and then there’s debt.

There were an average 3,422 bankruptcy filings per day in February 2015. This is a particularly cruel fate when you know you have a settlement amount waiting to be delivered to you in slow increments over time. If you’re looking for ways to reduce debt, you might want to think about selling your annuity to a financial institution for a lump sum payout.

You’re ready to start over. Moving on after a traumatic injury or stressful lawsuit is difficult, but the money you receive is supposed to serve as a way forward. Whether you’re looking to buy a home, start a business, or move to a new city for a fresh start, a safety net of cash from your settlement can be the security you need to take the next step.

If any of these situations sound familiar, it may be time to think about selling your structured settlement annuity. Talk with 123LumpSum toll free at 1-800-397-6721 today to learn about how you can turn in those small checks for a lump sum to get you on your feet again.

Manage Your Monthly Expenses With These Simple Tips

monthly expensesUnfortunately, learning how to manage your finances or monthly expenses isn’t a course usually taught to us in school. We have to learn as we go — often through trial and error (emphasis on the error). If you’re struggling to stick to a budget or find a positive balance in your bank account every month, here are some simple tips and tricks to help get you back on the right path.

  • Keep Track of Everything You Spend
    The first step to financial management is to become conscious of where your money goes every week. For a few months, keep careful track of every dollar you spend, whether it’s on rent, food, entertainment, or car payments. You may be surprised at your own results. Getting an idea of your current monthly expenses will help you find ways to cut down on unnecessary spending.But, be honest, if you don’t think you’ll actually keep track, there are a number of apps that will keep track of all your spending habits for you.
  • Find Ways to Make Cuts
    Once you have the data, take a good hard look at your spending habits to find small changes you might make that could lead to big savings. For example, bringing your lunch to work is a lot more cost-effective than eating out every day. And do you really need subscriptions to cable, Netflix, Hulu, and HBO GO all at once? Perhaps shop around for a discount gym membership. More than 40% of American families spend more than they earn; don’t be one of them.
  • Set a Goal
    While you might want to save up for a new house or car, your first goal should be getting out of debt. There are an average 3.5 credit cards for every person in the U.S., and Americans collectively owe over $11.9 trillion in debt payments. While paying off that credit card debt or student loan payment may seem like an impossible task, finding ways to reduce debt will help free up the rest of your money in the long run.

Managing your monthly expenses doesn’t have to be like pulling teeth. More often than not, simple awareness of your spending is enough to evoke change. While setting and sticking to a budget is a challenge, it’s one that will benefit you in the long run.

You can take control of your financial situation with a little bit of planning and willpower.