How Selling Your Structured Settlement Can Get You Out Of The Debt Trap
With household income rising no more than two percent in the last ten year and credit card debt spiraling to an astronomical net increase of $57.1 billion in new credit card debt in 2014, the average American might find the new year bringing a cash squeeze. According to research, $7,200 is the average credit card balance, most American families have 13 payment cards and over 40% of home are spending more than they are earning. The result is a tight financial situation that is difficult to get out of, as living expenses continue to rise.
Those with a structured settlement or annuity, however, have a way out. You can get cash for an annuity now by selling it or your structured settlement and unlike surrendering it, this lets you access your settlement cash and avoid the surrender fees that typically range from seven to 15% of the amount you plan to withdraw from your annuity. The lump sum can help you eliminate debts.
Arising in the 1950s to 1960s, the concept of structured settlements mean that you are paid an amount over a period of time. However, 65% of those surveyed in a recent American International Group (AIG) survey, said that they would rather have a lump sum payment instead of structured payments. Once a structured payment has been sold, it takes an average of 45 days to receive your cash. The idea is that you can get cash for an annuity now, rather than waiting 15 or 20 years for it to mature.
Given that less than a quarter of Americans have enough cash savings to last six or more months and only 27% save at all, the need to access cash quickly and easily is becoming more crucial.
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