- This was posted on September 26, 2008

In the last post we began talking about the present state of the economy and how we are all in a position where we must consider those things that will most benefit our family and our finances. Those receiving structured settlement payments may even consider the decision to sell annuity payments but may wonder if now is the time to do so.

The fact is there are many reasons to get cash for structured settlements and the economy is presently one of the best. With debt increasing and salaries staying stagnant, many structured settlement recipients find themselves in need of a lump sum of cash to get back on their feet. And why shouldn’t they turn to money that is theirs in order to make this happen?

The way that the process goes once a structured settlement recipient decides to sell annuity payments is as follows: the current payment recipient will seek out a reputable buyer of structured settlement annuity payments. This is, by far, the most crucial step in the process; there are many fly by night companies out there that may wind up putting a seller into a decidedly worse financial position. When choosing a buyer of structured settlement annuity payments, be sure to only work with those companies that have a good reputation in the industry, solid experience under their belts, and strong financial backing so that they can pay for what they are purchasing.

A buyer of structured settlement annuity payments will quote the seller a price for the payments they are selling based on current market value. The seller then collects the money for their sold annuity payments today, while the buyer then has claim to receive the upcoming payments from the annuity. It is important to note that the decision to sell annuity payments does not necessarily mean a decision to sell all annuity payments. A seller should, in fact, only sell those number (or portion) of payments that will yield them the cash they need to meet their current financial obligations.

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