Five Tips for Selling Structured Settlement Payments

Consumers choose to sell their legal settlements (also referred to as structured settlements) for many reasons. While many sell their payments to help with college tuition, debt reduction, medical expenses or mortgage payments, most people sell their settlement to gain financial flexibility when personal or financial needs change. The long payout periods of most structured settlements typically up to 30 years work well for many holders, but not all. Many people find that they need access to their money now to pay for legitimate needs.

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 many questions that arise when considering selling your structured settlement. It is recommended that consumers engage in some research ahead of time. Here are 5 tips to consider before selling a structured settlement:

1. Search for specialty finance companies that are able to purchase your structured settlement. Be sure to research their reputation and testimonials what clients (past and current) say is invaluable.

2. Unless a good deal, try not to accept the first offer to purchase your policy. Why? Browse multiple companies to make sure youre getting the most value for your settlement.

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

4. If you cant understand the legal jargon, 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.

Additionally, before you sell your structured settlement, be sure that the company youve chosen addresses all legal ramifications. Prior to purchasing policies, a reputable company will seek approval from a judge who examines the appropriateness of the transaction, including state legislation.