Should you Borrow Against a Structured Settlement?

Should you Borrow Against a Structured Settlement?If you have a structured settlement and are in need of cash for some reason, you may have given some thought to borrowing against the settlement. While this might seem like a good idea – especially given today’s low interest rates – borrowing against an investment like this can end up being costly and leave you in more debt than you had originally planned.

Check the Value of your Structured Settlement

Before you speak with a bank or another lender you’ll want to check the remaining and resale values of your structured settlement so you have an idea of what a bank might be willing to lend you. No lenders will offer more than the structured settlement is worth; the lender will own it if you default on the loan and giving you more than its value would result in a loss.

If the structured settlement still has a large amount of value it might be worth considering an outright sale to free up the cash that is locked in the settlement. We’ll discuss this option a bit more below.

Determine How Much the Loan will Cost You

Next you’ll want to sit down and figure out exactly what the loan will cost you in fees and interest. Give some careful consideration as to how long you think it will take you to pay the loan back; it’s worth adding an extra few months or years to this tally just in case of a job change or health issue. The total cost of the loan may end up being somewhat shocking and is typically why those who are considering borrowing against their annuity or structured settlement end up selling it instead.

Consider Selling your Structured Settlement Outright

Here at Rapid Cash Funding we spend the day helping individuals sell their structured settlements and annuities to buyers who are looking to pay a lump sum of cash. If you have a structured settlement that you are considering taking out a loan against you should at least give some thought to selling it instead as you may end up with more favorable terms, not to mention that you won’t end up further in debt. Selling a structured settlement is a relatively easy process that can get a large chunk of cash in your hands relatively quickly – get in touch with us at Rapid Cash Funding if you have any questions.

Check with Friends, Family and Colleagues

Finally it’s always worth checking with friends, family and your peers to learn from their past experience. It’s likely that someone within your social network has borrowed (or has considered borrowing) against an annuity or structured settlement at some point and can share their take on the process. Again, the decision must be made based on personal factors and your own values so in the end, trust your gut instinct and be sure to avoid going deeper into debt without a plan to get out!

For more information about selling your structured settlement or annuity, give the Rapid Cash Funding team a ring at 1-877-63-RAPID. We’ll be happy to discuss your structured settlement with you and to see how much cash you can get if you decide to sell it. Thanks for reading our blog and we look forward to speaking with you! online kasino

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