- This was posted on December 26, 2008

There is not much that people are not doing these days to make ends meet. With the Christmas holidays just past, most consumers are taking a sigh of relief that they were able to just make it through; now, of course, comes the part when we add up all that we spent and try to figure out how we are going to get out from under whatever debt we accrued. Now is not the time to be carrying credit card debt or any other sort of “bad” debt. And the sooner we are able to wipe it out, the better off we will be in this current economy.

The choice to sell annuity payments is one way in which consumers can come up with a lump sum of money to meet their financial needs – debt payment or otherwise. Annuity payments are made to those who are awarded structured settlements in a personal injury case. While those who go through a trial of this kind may be awarded money and given it all at once, those who settle out of court are often given a structured settlement – whereby the money is still paid out to them but not all in one lump sum. Rather, the money is deposited into an annuity that is held by a third party and payments are made to the recipient in equal installments and on a scheduled basis.

Because the recipient does in fact own the payments, they may decide to sell annuity payments to a buyer of structured settlement annuity payments in order to come up with a lump sum of cash that they can then use to pay down debt (or pay it off) or meet whatever other financial needs they have at the time.

The decision to sell annuity payments may be just the thing that is needed to help ride out the current economic storm and get back on track.

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