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

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.

Paying Off Credit Card Debt Could Be As Simple As Selling Your Annuity

Cash for a structured settlement

Credit card debt is no laughing matter for way too many Americans today, and if you’re like most people, you’d love nothing more than to pay off all those debts and put them in the past. It’s hard to figure out how to get this money in the first place, but if you happen to own an annuity settlement, then the money is actually already right under your nose!

Selling your annuity is a great way to get a lump sum of cash (which you already technically own, by the way) and finally get control over your money so that you can use it in a better way — on something like paying off your debts, for example!

Selling structured settlement annuity payments does not involve breaking your annuity contract and it’s 100% legal. In fact, the process even requires legal documents and a court visit to ensure that all parties involved are on the same page. You won’t receive the entire amount of money that’s sitting in your annuity account, but you’ll definitely receive more money than you would if you broke the contract. Furthermore, you won’t have to watch that money slowly dwindle because of regular maintenance fees. Once you sell your annuity and have control over the money, you’ll be able to pay off all that debt you’ve been smothered by for years.

If you’re still not sure whether selling your annuity is the right choice, consider these facts:

  • The average American household pays about $950 in interest every year.
  • The average American adults owes $3,761 in credit to a variety of lenders at any given time.
  • All in all, Americans owe a collective $11.91 trillion in debt payments.

You definitely aren’t the only one with credit card debt — but that doesn’t mean you have to live with it forever.