In some situations, a structured settlement buyout is an attractive and financially intelligent decision. Say you receive structured settlement payments and at the same time, you have a mortgage that has you upside down. A structured settlement buyout could get you ahead of the financial curve.
Perhaps you’re thinking that selling future annuity payments for a lump sum based on the current value is not wise, but doing that will keep you in your home and fix your credit score. Consider how much cash you’ll save down the road by having a high credit score. Because you chose to take a structured settlement buyout, you will save tens of thousands of dollars in interest over your life.
Additionally, consider how a structured settlement buyout will fix your short-term situation. No more annoying calls from creditors. No more sleepless nights filled with concern over your rent or mortgage. You can easily improve your long-term situation when you don’t have short-term financial difficulties.
A structured settlement buyout will allow you to hit the reset button on your fiscal space in life. It is a very serious move and needs to be analyzed from all sides.