by admin
4. November 2010 05:57
Hi everyone. J.G. Wentworth here.
There are a surprisingly large number of folks out there who don’t do the proper amount of planning before they sell their structured settlement. Because of this, I thought I’d outline the steps we recommend our customers follow before selling some or all of their settlement payments.
Review your structured settlement. There may be features about it you forgot or didn’t quite understand at the time of the settlement. For instance, there may be adjustments in your payments for inflation, or larger payments on special dates, or some of your payments may be “non guaranteed.” All of these features will affect the lump sum payment you can get now.
Evaluate the role your settlement plays in your monthly budget. What percentage of your monthly expenses is covered by your settlement payments? If it’s a lot, and you sell some or all of your payments, you’ve got to consider how you will deal with the shortfall in your budget. If it’s a little, then you have many more options available for drawing a lump sum from your settlement payments.
Understand your precise cash needs. It’s difficult to know how many or what portion of each of your payments to sell when you don’t know how much cash you are trying to raise. Moreover, if you underestimate how much cash you’ll need, you may need to sell more payments later on.
Stay tuned for my next blog entry, where I’ll discuss three more aspects of getting ready to sell your payments.
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