Sell Annuity Payments to Protect Credit
- This was posted on May 28, 2008
Our credit score – while only a number – is a component of our lives that wields extreme power. Whenever we apply for credit of any kind, whether it’s the purchase of a home, the buying of a car, or the application for a credit card or line of credit, potential lenders pull our credit reports and examine our history as well as our credit score to determine our overall creditworthiness. If our credit score and credit history point to responsible fiscal behavior, creditors are more likely to approve our applications. Those with poor credit, however, are likely to find themselves in tough financial positions going forward – unable to obtain credit or a low enough interest rate to be able to afford the monthly payments. With all of this information at hand it stands to reason that it is vitally important to protect our credit. To this end, many consumers look for ways to pay down – or off – their credit aggressively so that they can repair their credit score and have more financial options.
One of the ways that consumers are able to pay down their debt and subsequently repair their credit is by making a choice to sell annuity payments if they are currently receiving a structured settlement.
A structured settlement is a payment plan set by the courts for those who have been awarded financial restitution as a result of a personal injury or wrongful death suit. Rather than the recipient being given the entirety of their settlement at once they are awarded regular payments through an annuity purchased for this purpose.
Should cash for structured settlements be required at some point, however, as in the payment of debt, a recipient may choose to sell annuity payments in order to get the cash they need. A buyer of structured settlement annuity payments will pay the seller a lump sum of money in exchange for a specified number of payments.
Popularity: 13% [?]