by admin
12. August 2010 03:21
Hi everyone. J.G. Wentworth here.
You know the question I get the most frequently is, ‘Should I sell my structured settlement payments?’
I always answer pretty much the same way by saying that everyone’s situation is different and what works for one person may not at all work for another. That’s a pretty general answer, so then I like to list out what I think are some pros and cons are for each course of action.
The Pros of Selling Your Payments
- You get your money when you need it
- Your future payments are not eroded by inflation
- Selling your payments does not create a debt
- There are generally no tax consequences
The Cons of Selling Your Payments
- You reduce or eliminate a future source of income
- Other sources of funds may be easier to access
- You receive the ‘present value’ of your payments when you sell them, which will be less than aggregate sum of your payments.
Whether the pros or cons have it is, again, highly subjective. Your structured settlement was crafted with great care to anticipate future needs. Accordingly, the decision to sell some or all of your payments to a structured settlement company should be made with equal care.
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