Some say that money is the root of all evil; realists on the other hand tend to agree that it is not money but the lack of money that sits at the heart of evil. The difference in wealth is a consequence of our capitalistic society and always has been a major topic of interest for our nation. As the wealthy only seem to get richer, the average American seems to be plagued more and more by high-interest loans, crippling debt, and financial hardships.
The Average American Household
Our nation is one that is founded on the very idea of consumption; a strong economy is one where there is an excess of spending — unfortunately the average American household has a tendency to spend more money than it is capable of making. The average consumer has over three credit cards and owes an average of $6,658 in annual interest. One out of every five American youths would state that they fall into an area of “debt hardship” with around 26% of all Americans admitting to not paying their bills on time. It is easy for people to feel trapped in debt with no way out; for a select few lucky participants, one lottery ticket is all it takes to wipe away the debt and start with a clean slate.
The Nature of the Beast
The lottery is by far the most popular and widespread form of gambling in the United States. Every week, millions of Americans around the country try their luck at winning big; unfortunately the lottery comes with a few unexpected conditions. Right off the bat, the federal government withholds 25% of the winnings for taxes and state government withholds an additional 6-9% as well. Winners of the Mega Millions and Powerball lottery that elect to take their lottery payments in the form of an annuity receive checks over a 30 year period that incrementally increases by 5% every year. In the meantime, those who hold a lottery annuity are subject to annual maintenance fees that can claim around 3% of your winnings every year. If that was not enough, annuity holders are subject to early withdraw fees on top of other surrender charges. Even those lucky enough to win the lottery cannot escape the elaborate traps laid out by the system.
One of the best ways lottery winners have found to escape from the endless nightmare of debts and fees is to sell annuity payments. There are a number of payment financing companies that enable structured settlement holders and lottery winners alike to sell annuity payments for a lump sum of cash. Keep in mind that to sell annuity payments, many annuity holders will have to pay up to 10% of their winnings in surrender fees. In addition, while finance companies enable winners to sell annuity payments, keep in mind that you will not receive 100% of your winnings. For those facing crippling debt or just need a lump sum of cash fast, it may be best to sell of your annuity payments to get the most out of your winnings before regular fees eat it up. Annuity holders have the option to sell all or only some of their annuity payments if they so choose. Contact a specialty financing company in your area to schedule a personal consultation to determine if selling off your annuity is right for you.