Debunking 3 Common Myths About Selling A Structured Settlement
Many people who are awarded structured settlements consider the option of selling for a lump sum payment. After all, while receiving equal, scheduled settlement payments for an extended period of time can be nice, many would prefer to have the money they're entitled to awarded to them all at once. This way, they can take care of financial obligations, such as paying off debts and making necessary purchases. Still, if you're considering the option to sell your structured settlement, there are some myths you'll want to be aware of.
Myth 1: You Have to Sell it All
Many people who are awarded structured settlements are hesitant to try selling them for a lump sum payment because they're under the impression that they have to sell the entire settlement at once. However, this couldn't be further from the truth. In reality, you can decide to sell all, or even just a fraction, of your total settlement. In fact, this can be a great way to get an up-front cash payment without having to sacrifice the peace of mind that comes with receiving long-term, structured payments.
Myth 2: You're Not Allowed to Invest the Money
Another misconception people have regarding structured settlement payments and lump sum payments is that, once you sell your settlement, you can't use the money in any form of an investment. This is also not true. You can use your settlement money in any way you wish, whether that is paying off your mortgage, buying stock in a company, or even putting it into a savings account to collect interest. Whatever you do with the money is your prerogative--but one of the smartest things you can do is to invest it.
Myth 3: Once You Reach an Agreement, the Deal is Done
Finally, once you agree on selling your settlement to a lump sum payment company, don't think you're in the clear. Before you can finalize your agreement, you'll actually need to appear in court before a judge for approval of your settlement. Although today's structured settlement buyers are quite reputable and care deeply for their customers' best interests, this is a necessary step in the process, especially when large sums of money are involved. In most cases, however, the judge will have no problem signing off on an agreement, so long as both parties agree and understand the terms.
For more information regarding lump sum payments, visit myLumpsum.com.