by admin
21. October 2010 03:50
Hi everyone. J.G. Wentworth here.
You know it struck me the other day that there’s a lot of talk right now about the inability of ordinary folks to get loans because then banks aren’t lending. But if you have a structured settlement, this may not matter. After all, why take out a loan when getting a lump sum of cash has so many advantages to it?
First, you could save thousands of dollars on interest. When you get a lump sum of cash from a structured settlement, there’s no interest to pay, as this is NOT a structured settlement loan. However, when you get a loan, you will pay interest each and every month.
Second, you don’t need a perfect credit score. Banks make decisions about loans based on a person’s ability to pay, and if they can’t pay, on how easy it is to sell the underlying collateral to get their money back. When you sell structured settlement payment streams, you don’t need to demonstrate a perfect credit history. You simply need to demonstrate that selling some of your payments is in your best interest.
Third, you avoid having to make a monthly payment. When you get a loan, you must make the regular payments, regardless of what’s happening in your day to day finances. As a result, unexpected expenses could cause you to have to make difficult choices between paying your loan or taking care of these expenses. Moreover, missed loan payments may affect your credit score or result in the lender taking action against you to get their money back. By contrast, when you sell structured settlement payments, you avoid a monthly payment altogether.
Of course, you need to carefully consider whether or not you can afford to sell some or all of your payments. If you can, it’s an idea well worth considering versus taking out a loan.
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