Structured settlements can be financially beneficial for some people, but for others, having a lump sum of cash can help them achieve goals or pay off debts. If you’re looking to cash out your settlement annuity, there are a lot of factors to consider.
Is Cashing Out Right for You?
Before you try and get cash for your structured settlement, you’re going to need to get permission from a judge to sell the right to some or all of your payments to a factoring company. The judge will review the terms of the sale and your reasons for wanting a lump sum and determine whether the payout is in your best interest. Getting these determinations can take anywhere between 45 and 60 days, so make sure that you can wait that long for the payment.
How Much Can You Get?
Of course, the question is how much you’ll get for cashing out your structured settlement. This amount will depend on how many payments you’re going to sell, as well as things such as your age, the state you live in, your reason for wanting a lump sum, and the “discount rate” that the factoring company will calculate based on the risk of receiving payments in the future.
If you think getting cash for your structured settlement is right for you, it’s best to shop around and ensure that you’re getting the best rate from a factoring company before you agree to sell your payments.
Visit WePayMore Funding LLC for more information.