Day: March 1, 2016

How Do I Decide Whether or Not to Sell an Annuity?

    Finance Tips

Manage your finances

The task of watching the credit card balances is exhausting. Just as you think that you are reaching a point where you are going to significantly reduce your debt, an unexpected expense comes up and you are again scrambling to find a card that has room for another significant charge.
The fact that over 40% of American families spend more than they earn is an indicator that many of those families may be playing the credit card juggling game. The game that includes months of making progress on overwhelming debt, and then suddenly switching to a single day significant charge for a major home repair or car maintenance fee that can not be avoided.
For families who are trying to break this crippling cycle of debt, selling an annuity is a simple decision. Even for families who are not in financial crisis, the decision to sell an annuity can still be a simple one. Whether you find yourself in the fortunate situation of deciding to sell an annuity because of a company buyout option, an unexpected lottery winning, or as a result of a court settlement case, the decision to take the money up front is often the correct choice.
Selling an Annuity as a Way to Reduce or Eliminate Debt Is a Wise Decision
Ways to reduce debt are often difficult to find. While families can spend months cutting costs and eliminating unnecessary expenses, these same families can be blindsided by an unexpected home repair bill or emergency medical expense. Taking cash for an annuity settlement can be the perfect way to eliminate high interest credit card charges. Once the high interest fees are eliminated, families can move on to a more responsible and accountable budget plan. When you are in the middle of paying costly interest fees, however, the debt recovery process can seem impossible. Consider the overwhelming financial situations of many American families:

  • 20% Americans between the ages of 18 and 24 describe themselves as being in ?debt hardship.?
  • The average U.S. home has 13 credit card payments.
  • The average U.S. home is paying a total of $6,658 in interest every single year.
  • Only 37.4% of credit card holders pay their full balance every month.
  • As many as 15.9% of credit card holders pay only the minimum balance every month.
  • American consumers owe a combined $11.91 trillion in debt.

The Decision to Sell an Annuity with Lottery Winnings Is a Step In the Right Direction
Lottery winners do not have a great track record when it comes to the wise use of their winnings. Deciding to take fancy trips and make extravagant automobile purchases, and ignoring large credit card debt, can lead to the complete waste of what should have been a great financial opportunity.
Consider this devastating finding about American consumers who find themselves in debt. The most current research indicates that consumers grossly underreport and underestimate how much debt they have. As of 2013, for example, actual credit card debt that was reported by lenders was 155% greater than borrower-reported balances. Denying debt is dangerous. What starts as simple white lies to a spouse can become significant problems as interest rates continue to increase and multiply.
Lottery winners should face all of the debt that they have and begin by paying off the largest interest loans and charges. If you still have winnings left after you pay down the first debt, move to the next highest interest loan or credit card. Showing restraint and paying down your debt will make a larger impact on your life than buying a new house or taking a dream vacation.
Taking Cash for a Company Buy Out May Provide the Best Results
Even the most financially sound families and individuals may decide to sell an annuity instead of taking monthly payments over an extended period of time. Neither life nor a company’s financial solvency is definite. A person who is healthy today may not be around to receive and enjoy the lengthy payments from a long term scheduled agreement. A company that is offering to buy out its top employers today may find itself in financial crisis in five years.
The decision to take advantage of a cash opportunity is what makes the difference between financial success and financial ruin.

Your Structured Lawsuit Settlement Could be Costing You Thousands The Facts About Taxes

    Finance Tips

Lottery annuity

What American consumers don’t know about debt could be costing them thousands every year. Delaying payment or defaulting on student loans, car loans, and mortgage payments could be hurting their credit more than they realize. Recently, studies indicated that American adults are carrying more than $10 trillion in debt. In fact, if 1 trillion one-dollar bills were stacked on top of one another, it would reach over 60,000 miles high, or roughly one-fourth of the way to the moon. Americans owe 10 times more than that in credit and loans, and the amount of our debt continues to grow.

Who has money to save for retirement? Most Americans carry more than $3,500 in credit debt, and some studies estimate that figure to be much higher. About four out of every 10 Americans reports that they spend more than they earn, and they may not realize that making the minimum payments on their credit cards could mean that they are paying double or triple their original debt. Credit cards can be tricky, and once people start using them for cash, to pay bills, or to make car payments, they may find themselves in a position where the only financial solution is to continue using those cards.

In the event of a lawsuit settlement, many people find themselves having to choose between a structured settlement and a lump sum payout. Understandably, they want to avoid the taxes that can come with a lump sum, but what they probably don’t realize is that structured settlement fees and administrative costs could be costing them just as much. For example, if a medical malpractice suit settles for $750,000. If the administrative fee for the structured settlement arrangement is as low as 3% each year, medical malpractice victims could pay more than $20,000 for that service.

Studies repeatedly show that most lawsuit winners — and lottery winners — completely spend their money within five years. Looking for cash for annuity now? You are not alone: $20,000 could pay off credit card debt, pay down a mortgage, or even help start a small business. The startup cost for a small business is usually $30,000 or more; finding cash for annuity now could mean that a new business owner has cash on hand for computer equipment, phone installation, office rental, and down payments for commercial properties.

Getting cash for annuity now is possible, and there are finance companies that specialize in helping lawsuit winners with selling an annuity settlement. Real estate prices are on the rise, but finding that dream home is still a possibility. Not being able to pay the down payment because cash is tied up in a structured settlement? Many Americans see selling fixed annuities and starting a business as the pathway away from a lifestyle of credit card debt, and if cash is invested wisely, they may be absolutely correct.