How can I sell my structured settlement payments for cash and get best deal or discount?
Posted on Jan 25, 2012 with Comments 3
asked:
Ian Dildine
Ian Dildine
Filed Under: Personal Finance
Its bit complex process, but you can get good deal in your structured settlement payments. if you really required money then sell it and get maximum benefits in it. But take care while choosing company to get maximum benefits.
Check the classified adds in your local newspaper. Mine has ads from people wanting to purchase structured settlements. The price they are paying varies with the source. The more solid the source is, the better rate you will get. The shakier the source of the settlement, the more interest the buyer wants to compensate for the risk.
From what I see in the paper, most purchases of structured settlements pay the buyer 18% per year.
The buyer figures out how much money you will get from the total payments of the settlement. Then compute how much money 18% per annum is and subtract that from the total amount the settlement will provide. rc
Selling off a structured settlement is like dealing with a pawn shop. You’ll only get about 20% of the expected total value of your settlement. For short term settlements, you’ll get better, maybe 30%, but if the amount is large, that drops it right back down again. For most of the companies that buy structured settlements, you’d actually do better to get a credit card at 30% interest and use THAT, and still make more money by paying off the card each month with your settlement.