Are you interested in cash for your structured settlement? If you’re not sure what a lump sum payment is or how it works, you may want to continue reading below. More and more Americans are struggling with debt nowadays — from medical bills to student loans, the various factors that can sink you into thousands of lost dollars seem never-ending. With a structured settlement annuity you can see your debt gradually paid off over a fixed period of time with minimal interest and fuss, allowing you to get back to your life sooner than you thought possible. Let’s take a look at how this process works and whether or not it’d be right for you.
What Are The Most Common Forms Of Debt?
While debt can occur from many different situations, there are a few that are becoming increasingly common for the average American. Nearly one in five Americans under the age of 24 describe themselves as being in ‘debt hardship’, after all, so it stands to reason this is becoming a foundation everyone can relate to. Over 70% of Americans believe the greatest debt stigma concerns underpaid credit and debit cards. Medical bills, student loans and home payments are also common sources of debt hardship for many.
How Do People Generally Pay Off Their Debt?
Some choose to save up their money gradually, while others attempt to use whatever resources are at their disposal to shave away at stubborn debt. The average American household with debt carries over $15,000 in credit card debt and a whopping $129,000 in total debt — although household income has grown by 25% in the past 12 years, the cost of living has nearly doubled. Even now one of the most effective and popular methods of getting rid of excess bills and fees is getting cash for your structured settlement.
What Is A Cash For Settlement Payment?
Also known as a structured settlement annuity, selling a structured settlement is an incredibly effective way of tackling debt in a gradual manner. The average structured settlement payout in the United States is around $324,000, with over $6 million paid each year to fund new structured settlements. In fact, it’s been found that consumers vastly underestimate or overestimate how much debt they have — as of 2013 lender-reported credit card debt was a stunning 155% greater than overall borrower-reported balances.
What Is A Lump Sum?
Similar to a structured settlement annuity, a lump sum is a fixed payment you can receive to help pay off your bills. More than 37,000 Americans use structured settlement money on a yearly basis and over 90% of claimants who sell their structured settlement are ‘very satisfied’ with their decision. When the average American household pays a total of $6,000 in interest every year, it helps to have something you can rely on to reduce your day-to-day stress.
What Is An Annuity?
Compared to the one-time payment of a lump sum, an annuity is paid over a period of time. Selling off an annuity can surrender charges of around 10%, but the trade-off is a more feasible way of tackling your debt. Structured settlement payouts can reach over a $100,000, which is perfect for when medical bills and student loans are getting too high. If you want to get started on the right track to getting cash for settlements, look below for some simple tips.
How Can I Get Started?
Consumers have a wide variety of options for reducing pain and eliminating credit card debt, according to financial experts. Since a low credit score can impact your ability to apply for loans or buy a home, one of the first things you want to do is go to the source — a survey conducted by CreditCards.com found that people were able to successfully waive fees 80% of the time when meeting with credit card companies, allowing them to eventually balance out their score. Personal loan rates can be as low as 5% if you have a good credit score, giving you convenient monthly payments with accessible interest. Debt isn’t forever — with a structured settlement annuity, your goals can be realized in good time.