If you have a structured settlement where you receive your personal injury claim, award, or settlement over time, you may be able to withdraw the settlement. To do this, you sell some or all of your future payments in exchange for getting cash now. The entire process of selling your structured settlement payments takes 45-60 days. Sometimes it's too long when a serious financial crisis looms.
That's where a cash advance comes in. Structured settlements and annuity payments can generally be sold at any time. You have the option to “withdraw” some or all of your future structured settlement payments. Buyer companies charge a discount rate for the sale of structured settlement payments, which averages between 9 and.
RSL Funding helps beneficiaries of structured settlements or annuities obtain the funds they need to avoid financial hardship and potential damage to credit ratings. A structured settlement (cash out) or a lump sum is a viable option that can help people financially without the added stress of having to return the money. When consulting with those who have structured settlements, RLS Funding takes care of purchasing the settlement for a lump sum. When a person first accepts a structured settlement, they are forgoing an immediate cash payment in exchange for regular future payments.
Future payments appear to be better because the total amount of payments (the payment) is greater than a current lump sum payment in cash. But the money of the future is worth less and less (due to inflation). The crucial number is the present value of the structured settlement. This is the current amount of money needed to obtain the future flow of payments, taking into account inflation and other factors.
For example, one hundred thousand dollars per year received over twenty years is a payment of two million dollars, but the current value of the twenty-year payment is substantially less than two million dollars due to inflation. Once the structure is purchased, the injured person gives the company a change of address, making periodic payments, and a power of attorney to the factoring company to accept the payments. When faced with costly car repairs, medical bills, or unemployment, those receiving settlement payments can withdraw money to get the money they need quickly. Collecting your structured settlement has the potential to significantly improve your financial situation, either by getting your monetary situation back on track or by providing the funds to capitalize on a new opportunity.
With an industry reputation for excellent customer service, they offer a full suite of services to help you navigate the cash out process. The factoring company acquires the structured settlement at a price substantially below the present value, perhaps charging excessive fees and without disclosing the rates and terms of the transaction. In general, by selling your payments, you have decided to have access to a larger amount of your prize money at a higher rate than court adjudication programs in exchange for handing over some of that money to a structured settlement company. Structured settlement payments are subject to a discount rate or an administrative fee imposed by the buying company.
You should also consider whether you can dispense with income from your structured settlement and whether your need for a lump sum is valid and more important than that income. The court process was established to protect owners of structured agreements from being exploited. If you don't have a traditional savings account full of cash, don't feel bad, it's not just you. Courts and financial institutions normally grant structured settlements in cases where a large amount of money is awarded to a beneficiary, and that sum is divided into manageable parts that will be paid over the course of months or years.
In these situations, many recipients of future settlement payments find that selling all or part of their settlement payments to obtain a cash payment is an option that solves their problem. Annuity sales, structured settlements, scheduled lottery payments, or other ongoing cash payments became more popular during the recession. When the holder of a structured agreement calls, an agent and team will review the agreement, the circumstances and the reasons why the applicant needs the cash. But despite regular payment fees, people find themselves in situations where a structured settlement cash withdrawal is needed to address a financial need.
When deciding whether to withdraw your structured settlement payments, you should ask the companies that can purchase them a few questions. . .