If you have been awarded a structured settlement after winning or settling a personal injury suit, then you should expect to receive periodic payments for a fixed number of years or your entire life.
Due to the present circumstances however, you might not be in a position to fulfill your financial obligations as before. For example, if you got seriously injured after an accident, you may not be in a position to pay your medical bills, repay your debts, or even purchase a house.
This means that you will need money now more than ever before.
And because you will have to wait 30-45 days or more to get your first cash out, you might not be able to cater to your urgent financial needs. Still, the monthly payments may not be enough to meet your current financial needs.
When faced with such a predicament, you might want to consider taking out a structured settlement loan.
Structured Settlement Loan: How Does it Work?
In this case, the lump-sum received is less than the total value of the settlement. This is because the current value of the money especially where high interest is involved, is much lower compared to the amount of the postponed payments.
This means that the borrower must be willing to exchange a higher value of his/her money for the benefit of an immediate lump-sum.
Is it Beneficial to Apply For The Structured Settlement Loan?
Yes. It’s beneficial and for a good reason.
It’s no use failing to fulfill your pressing financial obligations due to lack of funds while you have a tidy sum lying somewhere.
Structured settlement loans are a great option especially when you are in dire need of immediate liquid cash; instead of waiting for monthly payments which might not even be enough to cover your immediate obligations.
The best part about taking a loan against the settlement is that you won’t have to provide any co-signers, collateral, or other standard loan requirements. You also get the money real quick. Some lenders even pay within 24 hours after approval.
Another reason why a structured loan is an attractive option is that you won’t owe the lender any money simply because you are taking the loan against your own settlement.
It’s a smooth ride all the way.
It’s Your Money After All
You have nothing to lose for taking a settlement loan because after all, it’s your money and are therefore free to use it as you wish.
However, remember that taking out a loan against your settlement could have a negative impact on your future payments. You need to calculate how much will remain after cashing out for the sake of your future financial health.
Now that you’ve decided to take a loan against your structured settlement, you just need to find a good company that handles such transactions. Do your due diligence before settling for one since different companies offer different rates and have different policies.
Also, remember that because this is a legal procedure, your loan must be approved by a court.
Otherwise, a structured settlement loan can be beneficial especially when faced with an immediate financial crisis. Since it’s your money, all you need is to follow the right procedure and get your cash in just a few hours.
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