Did you know that the average adult owes nearly $4,000 to lenders? There are a lot of reasons you may want to get cash for an annuity. And debt is probably at the top of your list.
The struggle to decide on cashing in is not a light one. By cashing in, you will lose a portion of your money — in most cases it will be about 10%. Although you?ll still be getting the large percentage, this can be a tough number for many people to swallow. However, by not taking the money now and getting out of debt, you?re setting yourself up for a lot of future problems. Let?s review.
Student Loans
Many people have upwards of $10,000 in student loans; those who have gone on to graduate school may have more than $20,000. These loans can be fairly crippling and can prevent young adults (and older adults as well!) from making important financial decisions, like buying a home or buying a car. And one of the scary things about student loans is that they can?t be discharged by a bankruptcy court, so you?re basically stuck with them for life whether or not you have a real ability to pay them off.
You Can Get Interest by Investing Your Money
If your annuity is greater than the sum of your debt, then you can put the remainder into an investment fund. If you keep your money in the stock market for the next 20 years, you can rely on it once you?re older or near retirement age and you will have received a good percentage more than what you put in. When your money is locked into an annuity, you?re not going to get the same return. This can help you to ?make back? any money you subsequently lose by selling the annuity.
Manage Your Finances Better
Being poor is expensive, believe it or not. It can be difficult to manage your money when you?re constantly worried about overdraft fees and have to keep track of 10 different monthly bills. Sooner or later, most people slip up — and this only results in more debt getting added to the list. Cash in your annuity, pay off debt, and you won?t have to have so much day to day stress. Instead, you can start managing your finances properly and get on the fast track to actually saving some of the money you make.
Take Back Your Life
Ultimately, it’s your life to live, and you only have it once. Stop living in fear of debt and feeling like you can’t do fun things or buy the home of your dreams because you’re endlessly waiting for your annuity.
