Which Debts are Worth Selling your Annuity to Pay?

Which Debts are Worth Selling your Annuity to Pay?If you have an annuity that you are holding on to for future payoffs but are struggling with debt today, selling your annuity might be the answer that you’re looking for. Annuities can fetch a decent chunk of cash when sold up front, and if used properly to pay off debts and to reduce your interest burden, selling your annuity can end up being more valuable than keeping it and relying on it for income in the future. Let’s take a quick look at a few points worth considering when you’re looking at selling your annuity to pay down your debts.

Consider your Future Investments

First, you’ll want to consider whether or not you have other investments that will pay off in the future, such as IRAs or other interest-bearing retirement accounts. If you already have that “nest egg” sitting and waiting for use later in life, then selling your annuity will feel like less of a burden and more of a strategic decision to control your debt. However, if your annuity is your sole source of retirement income you will need to either replace this source of income by the time you reach retirement or keep the annuity and face your debts head on today.

Tackle High-Interest Items First

Once you sell your annuity, you’ll want to get rid of your high-interest debts first. Start with store and branded credit cards, which usually carry incredibly high interest rates and can quickly cause you grief if you use them without paying them off. Once your credit card debts are paid, immediately cancel your cards and cut them up to ensure you won’t find yourself in the same hole in the future. Any necessary purchases can be made in cash, and if you can’t afford it – you can’t afford it.

Thinking About Cashing Out to Invest? Think Again

Many individuals visit Rapid Cash Funding with the hopes of cashing out their structured settlement or annuity so that they can invest the money in stocks, bonds or other items. However, it’s important to consider that no matter what the investment, buying in is a risk and can actually end up losing you money down the road. Selling your annuity to get rid of high-interest burdens is very useful, but selling to invest isn’t the greatest idea – even if the investment is a “sure thing”.

Use your Annuity as a Last Resort

One final note is that your annuity should be considered as a last resort, once other options have been exhausted. An annuity is an investment that is guaranteed to pay off later in life; it’s worth selling in times of crisis or to get rid of debts and that’s about it. If you can’t get your head above water any other way, get in touch with us here at Rapid Cash Funding and we’ll share how we can help.

If you have an annuity or structured settlement that you’re considering selling, give the team here at Rapid Cash Funding a call. You can reach us at 1-877-63-RAPID, where one of our team members will be happy to answer your questions and help determine what your structured settlement or annuity is worth today. We look forward to speaking with you!

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