Tips for Selling Your Structured Settlement
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If you become injured due to the carelessness or negligence of another, you may be entitled to monetary compensation. Often, victims receive their compensation in the form of a structured settlement. A structured settlement is one that is paid over an extended period of time rather than all at once.
Sometimes, people decide that a lump sum payment is preferable to their structured settlement. A structured settlement can serve as a steady source of income, but is not right for everyone. Let's say you want to buy a home, pay off large amounts of debt, or invest. In these cases you might decide that a lump sum payment would benefit you more than a structured settlement. Luckily, you have the right to sell your structured settlement in exchange for one large payment.
The buying and selling of a structured settlement can be a good situation for everyone involved. The injured party gets the money they need all at once, and the settlement buyer gets a surefire investment. It's a simple concept -- the buyer will offer you a lump sum amount that is normally around 15% less than the total amount of your structured settlement. This 15% is what they end up earning after the structured settlement is complete.
It's important to carefully consider all the pros and cons of selling your structured settlement before making a decision. Once you sell, you no longer have access to your structured settlement payments, which now belong to the buyer. If you have questions about whether or not selling your settlement is the best thing for you, consult with a trusted financial advisor.
Copyright 2007 Jim Sterling - All Rights Reserved
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