Sell Annuity Payments and Weather Economy
- This was posted on April 29, 2009
There is a definite sense of watching and waiting in the air; between the economy and the current flu scare people are more inclined to circle their wagons and wait out the current situation. Things have certainly gotten a bit better in the last weeks – but it may be the coming of spring that has lifted everyone’s spirits – but it’s clear that we still have a long road ahead of us in terms of waiting out the economy. Financially speaking, people also continue to circle their wagons – taking steps to save money and limiting their spending as much as possible.
In this current economic climate it may appeal to many people to have their debts paid down or paid off; it increases their cash flow, opens up credit for emergencies, and makes them feel safer. The pressure of owing a lot of money can put people over the edge during times of already existing financial stress.
One of the options that many people are choosing is the decision to sell annuity payments – an option that trades future payments made from an annuity for cash up front. Annuity payments in this respect refer to those that derive from a structured settlement.
A structured settlement can be put in place by a court system in a personal case when a claimant has been awarded money in an out of court settlement. That money – rather than being given to the recipient all at once – is deposited into the annuity and payments are made from there on a scheduled basis.
When a recipient chooses to sell annuity payments, however, they work with a buyer of structured settlement annuity payments – who buys the payments that the recipient is selling in exchange for cash. The buyer then takes ownership of the payments when they are made and the seller has the cash on hand to weather the economy the way they see fit.
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