Can You Exchange Your Structured Settlement for Cash?

by Peter Johnson - Date: 2008-09-30 - Word Count: 498 Share This!

You've been wronged and have received a structured settlement, but is there a way to sell a structured settlement for cash? The easy answer is yes. There are a lot of companies out there that will 'buy' your settlement to in exchange for a lump amount of money up front. This allows you to get the money when you need it instead of waiting to receive it over time.

However, before you decide to 'cash out' your structured settlement, you need to completely understand what you are in for. While you do get a large amount of cash up front, you should know that it will ultimately be less than what you would get if you go with the structured settlement payment plan. Companies that buy out structured settlements do so in order to make an investment and profit from it, there would be no point otherwise.

Also, before you sell your settlement make sure that you actually need the money right away. There is a huge difference between wanting and needing, and we all need to know the difference between the two. You can certainly make a case in the case of an emergency due to disaster or illness, but if you just want some new expensive product you shouldn't even consider it. You should really do with some patience and wait for your payments, depending on the amount of your settlement. If your settlement is pretty small, however, it may be a safe bet to sell it. On the other hand, if you have a large settlement that comprises a large portion of your income, don't truck with your settlement money.

The best thing you can do with your structured settlement is be patient and consider the value of having money rolling in long-term. Companies that buy out settlements are doing the same thing, taking a bit of a financial hit up front because they know that it will pay off eventually. If you are financially able, just sit back and let the money come to you. You will get more in the long run.

You can also invest your settlement money, whether you go with the cash option or not. You can easily have your structured payment plan automatically put into an investment plan or if you like to gamble, you can cash out your settlement and invest that way. Of course, the large cash investment can pay off huge or crash and burn, so always consult with a financial advisor before diving in. Financial advisors can tell you exactly what you should do with your money.


So the answer to the question is yes, you can sell your structured settlement for cash. There are a lot of companies willing to buy your structured settlement payments, but you have to be sure that you need, not want, the money right off the bat, rather than waiting for it. In a disaster or emergency situation, it may not be a bad idea to sell your structured settlement for cash.

Related Tags: settlement, cash, structured settlements, structured, structured settlement for cash

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