Monday, June 10, 2013

Is It Better To Get A Structured Settlement Loan?

If you have a structured settlement, you may have thought about selling your annuity to the highest bidder and be completed with it. However, you may require to think about in lieu a structured settlement loan.

Structured settlement loans, or annuity loans, are when an annuity recipient borrows money against future annuity payments that they are going to be receiving. After paying a fee, you will have the money you require up front, and you can pay for the loan out of the every month annuity payments you are receiving.

However, getting a loan on your annuity will most likely cost you less money overall then a sale would. Also, loans can cover any number of payments, while annuity buyers prefer 50% or more of your total annuity.

In case you are trying to choose between a loan and selling your annuity outright, think about that a loan will take a tiny bit longer to technique. Most annuity sellers will get their money within 45-60 days, while the loan may take up to 90 days. Court approval is also necessary for obtaining a loan on your settlement.

When you choose to take out a loan on your annuity, make positive to get all of the facts and figures up front. You may require an attorney or financial adviser to help you pick a lovely loan company to work with. Make positive to check in to the reputation of the structured settlement loan companies.

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Always ask for a quote. You ought to know up front how much of your annuity you will be getting, any taxes or fees involved, and also what the rate of interest is your loan. In case you are uncertain of the quote or what different fees are involved, don't be afraid to receive a third-party involved to give you leverage. However, if the rate of interest is over 10%, you may require to think about selling your structured settlement in lieu.

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2 comments:

  1. Nice post. I just recently found out that you can sell your annuity payments. Does that mean that anyone like myself can buy someone's annuity?

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  2. hmmm very nice post . . . The discounted lump sum that is being paid by the buyer of structured settlement annuity payments may cause confusion for those who are not properly educated in the reasoning for annuity settlements. When an arrangement is made from an insurance company or lottery commission for structured settlement

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