Selling your Annuity to Get Rid of Debt Collection Agencies

Selling your Annuity to Get Rid of Debt Collection AgenciesIf you’re finding that the phone is ringing a few times a day with bill and debt collectors on the other end it may be time to consider selling your annuity to pay off your debts. While most people would rather have their annuity and its guaranteed payouts later in life, massive debts can be a huge burden and it may be better off dealing with them sooner rather than later.

Find Out Exactly How Much you Owe

The most important step when selling an annuity or structured settlement to pay off debts is to sit down and get a full tally of how much money is owed to every lender, credit agency or company. This means getting a handle on the car payment (and how much is outstanding), all credit cards, all lines of credit, bank loans, the mortgage… even the phone bill and how much remains to be paid on it. Going through this process is important at is allows one to see a full tally of how much they need to become debt free; if the number is significantly higher or lower than the value of your annuity, it can impact whether or not you want to sell it.

Get your Annuity Assessed for its Cash Value

The next step is to have your annuity assessed for its cash value (the team here at Rapid Cash Funding can help with this) so you have an idea of what you will receive if and when you choose to sell. If you find that your total debt is $200,000 and you could receive $500,000 for selling your annuity, it is worth taking the time to figure out what you will be doing with the remaining money. Annuities are excellent long-term investments; if you have a pile of money left from selling your annuity it’s probably worth putting some back into some other form of investment.

Negotiating with Debt Collectors

One excellent trick that can save a lot of money is to call up those who you have sizeable outstanding debts with to see if they are willing to negotiate the debt down to a level that you can easily pay it. Any large debts that have gone to collection agencies are open to negotiation as the agency knows that getting something is better than getting nothing. Call these folks up and offer an amount equal to around one-third of the debt to see where they try to bump you up to.

Cash Out and Relax

Now that you’ve figured out your total debt, assessed your annuity and negotiated the debt down as much as possible, it’s time to cash out. Sell your annuity, cash the check and IMMEDIATELY use the proceeds to pay off all of your outstanding debts. Don’t wait! Having a large chunk of money sitting around can be incredibly tempting and those without incredible willpower may find that they are spending the money on things they don’t need. Pay the debts first and invest the rest.

When you’re ready to get your annuity or structured settlement assessed and sold, the team here at Rapid Cash Funding is ready to help. Call us anytime at 1-877-63-RAPID or send an email by using the quick contact form at the top right. We look forward to it!

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