Many of us dream of winning the lottery or a big lawsuit and of what we would do with all the money we would get. What most of us do not realize is that when a lawsuit is settled in our favor or we hit the big jackpot on a lottery, most of the winnings will be paid out over decades. When someone wins the Mega Millions jackpot, for instance, they receive one large payment and then receive yearly checks for about 30 years. Each check they get will be about 5% larger than the one that preceded it. Now, for a large number of people, that is a great arrangement. Many peoople would rather get the money sooner than later and use it now. It is sell the annuity and get settlement money now.
If you are considering selling an annuity payment or selling lottery payments, you do have to get the sale approved by a judge. This person will want to know that you have been fully informed about the ramifications of the sale. They will also have to be convinced that you have a good reason for making the sale of your annuity settlement. Lucikily, there are a number of reasons that will be found acceptable to the court.
- Avoid bankruptcy. If you are facing bankruptcy, you may want to get settlement money now to prevent this. You should not feel badly about your predicament. In February 2015, about 2,400 people filed for bankruptcy every day. Nearly 35% of all adults living in the United States have a hard time paying their bills every month. If you have gotten yourself into a situation where you are considering filing for bankruptcy, selling your annuity can be a much better option.
- Pay medical bills. More than half of all bankruptcies in the United States are caused by medical debt. If you or someone you love is sick or has been injured, selling your annuity may be your best option. This is a really good reason to want to get settlement money now rather than wait for decades.
- Get out of debt. American consumers have racked up nearly $12 trillion in debt. The average household has around 13 credit cards and pays around $950 in interest every year. If you have a lot of debt, paying it all off can be a very good reason to sell your settlement.
- Pay for college. Do you want to go back to school or make sure your kids can get a college education? College is a great way to increase your or their earning potential but is very expensive. Private colleges can cost more than $31,000 each year. Public schools run, on average, about $9,000 each year. That is just the cost of tuition. If you have an annuity, it will be hard or impossible to get financial assistance in the form of loans or grants. Being able to graduate without a lot of debt is a wonderful gift you can give yourself or someone else.
- Start a new business. Many new businesses fail because they cannot get access to enough start-up capital. It takes about $30,000 to start a new company. If you have always dreamed of owning your own restaurant, store, hair salon or other kind of business, you have a great reason to get settlement money now. This can make that dream a reality.
- Buy a new home. Imagine being able to buy a new home without going into debt. That is one other thing you can do if you get settlement money now. If you already own a home, you can pay it off and do any and all of the renovations to turn that house into your dream home. Any home purchase is not just a sale but an investment in your and your family’s future.
The decision to sell an annuity is a large and very personal one. Before you start the process, you should go over your finances carefully. Talk to your family and research all of your options. While more than 90% of people who sell their annuities say they are happy they did it, every situation is unique. Do your research and you will be happy with your decision.
