Think Before You Act - It's So Foolish To Sell A Structured Settlement Shortly After Setting It Up
Think Before You Buy A Structured Settlement
The single most foolish thing ever heard - and it did happen, and probably more than once - is a person signing a structured settlement deal to receive a future stream of fixed income and then a month or 2 - selling the settlement.
Nothing can be more dumb than this. Common, if you wanted a lump sum you probably had the choice to choose one or to craft the settlement so as to receive part of it in a lump sum any time soon or later. That would cost you nothing. You would still be receiving whatever you are entitled to. In contrast, when you sell a structured settlement, even a day after you did the settlement, you will be paying dearly for it, and that would be the cost for your foolishness that lies not necessarily in the act of selling your structured settlement that may be a legitimate move giving your circumstances and needs, but the lack of careful planning and obtaining sufficient financial advise and planning in the first place. You should have thought through your current financial needs and think if you are in need of pocket money now or you can afford to defer it and only then do you decision.
By selling your structured settlement you are going to pay a heavy price. You are not going to receive what you would from your future payments but get your lump sum at a fat discount. That means you are going to lose money. Which may make sense in a long time from now when your life has already changed in the course of time, but not a day or two or even a month after signing a reconstruct settlement - that shows only your lack of thinking and planning. It troubles me that this is exactly what has happened in some instances as I have read in the news, and what was even more troubling is the fact that it happened to a person who's need for the money was not something unexpected or urgent -- it was for a simple house renovation expenditure. Couldn't that person think of that need several weeks before, at the time of signing the structured settlement? The price he's paying now is a huge one; he could have spared it. Too bad, people are acting foolish at times. A little bit of thinking goes a long way to spare problems and loses later on.
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