Structured Settlement Loans – Learning Their Pros And Cons

Are you someone who has successfully resolved a lawsuit and have agreed to different periodic instalments of your money over a certain period of time? If answered yes, you’re receiving a structured settlement. Although this monetary arrangement fulfills legal obligations to both parties, structured settlements also have their own drawbacks, especially when unforeseen incidents occur and you need a lump sum amount of cash right away!

With the help of the structured settlement buying companies, you can sell off your structured settlement payments for one lump sum pay out, thereby giving you immediate access to money when it is needed the most. This type of sudden funding in exchange of structured settlements is known as structured settlement loan and it has saved many people from dire financial straits. Settlement loans usually take the prolonged instalments out of the equation and give you cash today. This isn’t a traditional loan like that you apply for at the bank, rather it is a cash advance on the periodic payments that you’ve agreed to receive. With a structured settlement loan, the company purchases part or all of your settlement and give you a lump sum large payment, in as fast as 24 hours after the approval.

Pros and cons of structured settlement loans

Before you jump into selling off your structured settlement, you should know the advantages and disadvantages of your present financial agreement.

  • Structured settlement loans give you long term financial stability during a time when you badly need money.
  • They can provide help for you minor dependants (if you have any)
  • There are some particular structured settlements that enjoy certain tax incentives.
  • You can never accelerate or increase the periodic payments and this is indeed a con
  • Structured settlements don’t account for the decreasing value of the dollar
  • In case you use your structured settlement loan as collateral, you may lose the tax benefits that you were previously enjoying

Are structured settlement loans the right option for you?

Structured settlements usually function well for many people as they offer financial security for a child’s financial future or even supply a steady flow of money for lifelong medical conditions. Many plaintiffs enjoy the tax incentives that go hand-in-hand with structured settlements. However, there are some situations when life presents us with unforeseen and unfortunate events when we direly require cash and this is when structured settlement loans are instrumental. You can use the money any way you wish, make a down payment on your mortgage loan or pay for your college tuition fees or cover medical costs or pay your credit card debt. Whichever reason you choose, you can use your structured settlement loan. This is indeed the best part of using such loans.

So, if you’re on the verge of some financial difficulty for which you need cash, you can consider selling off your structured settlement and get a loan in return. You can get approved for such loans within a day and hence disbursing money among your lenders can be easier.

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