Are you interested in selling your structured settlement, but aren’t quite sure how to do it without getting ripped off?
Selling a structured settlement can be a great way to make some quick cash. But, if you don’t go about it the right way, you could end up losing all of your money.
Check out this guide to learn everything you need to know about selling a structured settlement.
What is a Structured Settlement?
First things first, what exactly is a structured settlement?
A structured settlement is a set of payments that someone is entitled to after winning a lawsuit. The defendant is in charge of funding the settlement. The alternative to a structured settlement is a lump sum payment, in which the defendant pays all of the money they owe you upfront.
Many people opt for structured settlements because they allow for better money management. Because you’re not receiving all of your winnings at once, you’re less likely to blow your money or overspend on unnecessary items.
Tips for Selling a Structured Settlement
So, how do you sell a structured settlement without getting ripped off? Here’s what you need to do:
Research Buyers
Before you get in contact with a purchasing company, make sure to do your background research. Typically, all it takes is a quick internet search to find out everything you need to know about a company.
You’ll want to look for a purchasing company that has a high rating with the Better Business Bureau as well as positive online reviews. You should also consult with a financial planner or an accountant to determine the validity of a purchasing company.
Gather Quotes
After you’ve gathered a list of potential settlement buyers, it’s time to start gathering some free quotes. If a company tells you they can’t offer a free quote, that’s a red flag and you should walk away.
Consider Your Offers
Once you’ve gathered quotes from several different companies, it’s time for you to consider each offer to figure out which one is best for you.
Remember, you’re going to be selling your payment rights at a discounted rate. The lower the discount rate is, the more you’ll benefit as the seller because your payments will retain a higher cash value. If the discount rate is higher, then the benefit is bigger for the buyer.
Also, keep in mind that discount rates are negotiable. According to the National Association of Settlement Purchasers, a discount rate between 9 and 18 percent is considered average.
You can work with JG Wentworth to figure out a discount rate that you’re comfortable with.
Complete the Paperwork
After you’ve determined the company you want to work with, it’s time to complete some paperwork. You’ll need to work with your insurance company to process all of the paperwork you need to sell the settlement. For that you can visit easy paper writing services.
Once all of the documentation is completed, you should expect the rest of the process to be complete within the month.
Selling a Structured Settlement: Are You Ready to Sell?
Now that you’ve read this guide on selling a structured settlement, it’s time to get started. Pretty soon, you’ll have sold your settlement and you’ll have some extra cash in your pocket.
Be sure to check back in with our blog for more financial tips and tricks.
