Important Tips Before You Sell Structured Settlement Payments

Consumers choose to sell their structured settlement payments (also referred to as legal settlements) for a host of reasons. While many sell their future payments to help deal with their financial dilemmas, such as paying off their high interest credit card debt, catching up on mortgage payments, and paying college tuition bills for their children, many decide to sell their settlement payments to gain financial flexibility due to life changes. The long payout periods of most structured settlements, typically up to 30 years, does not work well for all holders. Many holders find that they need access to their money now to meet their financial challenges. However, consumers often are unaware of their options when selling their structured settlements. What price is too low? Which company is reliable? Can I sell just part of my settlement? These are just some of the basic questions that arise when considering selling your structured settlement. It is recommended that consumers engage in some research ahead of time. Here are some tips to consider before selling your structured settlement payments:

1. Search for finance companies that specialize in purchasing structured settlement payments. Be sure to research their reputation and testimonials.

2. Unless a great deal, try not to accept the very first offer. Why? Speak with multiple companies to ensure youre getting the most value in exchange for your settlement payments.

3. Evaluate your current financial situation, and then decide whether you need to sell all or some of your structured settlement payments.

4. If you do not understand all the legalities of the transaction, consult an attorney. Make sure you understand the documents and any tax ramifications that occur with liquidating your structured settlement.

5. Evaluate your financial obligations that will accrue in the future. Re-consider whether selling all or part of your structured settlement will be beneficial for you. Also, consider how accessing your assets will affect your income.

Lastly, before you sell your structured settlement payments, be sure that the company youve chosen addresses all legal issues. Prior to buying settlement annuity policies, a reputable company will seek approval from a judge who will determine if the transaction was consummated according to state and federal law and if it is in the best interest of the consumer.