CNN Money has released their latest report on America’s Best Places to Live their rankings are based on cities that have a large availability of job opportunities, schools that provide high quality of education, and safe neighborhoods.
These are qualities that many holders of investment annuities and structured settlement annuities seek when deciding to sell all or a portion of their annuities. “Sellers want a lump sum of money that will enable them to move out of a current living situation that is not optimal for their families and to purchase a home or rent in an area that is more suited for them” says John Zepeda, Vice President of Rescue Capital.
The use of funds is a factor that the courts take into account when reviewing an application for the sale of a structured settlement.
When a Judge reviews the application for a transfer, an approval will be based on many factors, one being that the structured settlement payment right being sold is fair and reasonable and in the best interest of the payee, the individual selling the annuity, taking into account the welfare and support of his or her dependents, if there are any.
Relocation for a better opportunity is one of the reasons why selling an annuity is often approved by a Judge.
Feeling uneasy about your money situation? You’re not alone. Many people feel exactly the same way. Sometimes it helps to get the advice of a financial expert to explain all your options and help you determine the best course of action. This is also true when you sell your structured settlement annuity payments. While selling the rights to your future payments isn’t for everyone, having a professional available to review your options can aid you in your decision.
When you’re looking to sell all or part of your future payments in order to fulfill financial obligations the decision isn’t one that should not be taken lightly. The value of your money and the extent of your need to receive your funds ahead of the scheduled payments are primary factors. Sometimes it makes more sense to take your payments in a cash lump sum rather than borrowing money at a high interest rate.
Avoiding foreclosure and paying off debt are just a few examples of why you may need to get your payments ahead of schedule. Life changes and having a lump sum of cash can help you get through tough times. Since you can’t always plan for the unexpected, it’s always best to know your options.
There is more than one way to get cash from a structured settlement or annuity. For instance, it isn’t necessary to sell all of your structured settlement or annuity payments. In many instances your immediate financial needs may not require that you to do so. Selling part of your future payments could be more than enough to pay unexpected bills while continuing to receive your scheduled payments.
Again, it can be difficult to navigate through all of your potential options on your own. It is important to research what the possibilities are and seek the help from someone in the know. Rescue Capital, a firm that buys structured settlements and annuities, can clear up the confusion and cut through any potential red tape that you might encounter at sale time. The money that you were awarded in your settlement is legally yours so shouldn’t you use it in a way that works for you?
Call Rescue Capital 866.688.3532 today to learn more and to receive your free no-obligation quote.
Sometimes in life we delay looking for solutions to our financial problems rather than dealing with them head on. This tactic rarely works because financial problems tend to become worse as the interest fees and penalties continue to grow. Perhaps the fear, depression or mistruths keeps us from realizing all the options available.
When you’re suffering financially waiting for payouts from a structured settlement annuity isn’t the most convenient way to get money. Clearly it would help if you can have access to your money sooner perhaps in a lump sum payment. Maybe you thought about looking into it before but delayed calling because you have poor credit and were afraid you wouldn’t be approved. The good news is that selling your future payments allows you to get the cash you need without borrowing money. It is not a loan it is a transfer of the legal rights to your future payments. So there is no money to pay back or credit approval.
The only way to improve your credit is to pay off your debt and selling your structured settlement could be the key to financial stability. Use the cash lump sum to pay off your credit cards or avoid foreclosure and invest the remaining funds to start earning interest for you. It is time to take control of your finances and reap the benefits of your money.
Working with Rescue Capital to sell your structured settlement for a lump sum has some benefits too. We can custom tailor the package to suit to your needs and goals. They can help you develop a plan to pay off your debts and work with your creditors to pay off the debts immediately. We’re also here to answer your questions without delay. Remember, the money is legally your property so why not use it to suit your needs.
You don’t have to sell you entire settlement. You can sell only part of your settlement, keeping some of your scheduled payments and have an influx of cash for your immediate needs. Cashing out your structured settlements can give you more financial freedom which is something everyone can use.
Don’t delay getting the facts about your financial situation. Call Rescue Capital today to discuss your situation and make your structured settlement to work for you. Call 866.688.3532 for your free no-obligation quote.
Last week J.G. Wentworth released a press release stating that only 6.6% of structured settlement recipients sell their future payments and that those who do sell commonly cite getting out of debt, purchasing a home or vehicle, unexpected medical bills or continuing their education as reasons for selling. [i]
The press release stated that the study was based upon data collected by J.G. Wentworth over the past 20 years but it did not provide any further details regarding the data collection. For instance, how did they obtain the data; how many people were included in the study and did it include data from other factoring companies besides J.G. Wentworth/PeachTree? In addition, there was no mention as to whether discount rate played a considerable role in the annuitants’ decision to sell.
Back in 2008, J.G. Wentworth published an email survey of 115 respondents who previously sold some or all of the payments to J.G. Wentworth in exchange for a lump sum payment. In this survey, only 18% said they were completely satisfied with their structured settlement. 31% said they didn’t wish that there attorney negotiated a single lump sum payment which means that many of them would have liked a lump sum payment. 60% of the respondents sold their payments to pay bills while less than 5% did so in order to buy a house. 30% stated that they would not sell their payments again. J.G. Wentworth only released 9 questions to an industry blogger and did not reveal the remaining questions, the number of individuals the survey was sent to or any other circumstances that could have skewed the results of the survey.[ii]
In the 2006 The National Structured Settlement Trade Association (NSSTA) survey of attorneys involved in structured settlements (43 telephone surveys) and structured settlement recipients (1275 telephone and Internet surveys) 75% of annuitants were happy with their structured settlement and would recommend one. [iii]
In an AIG survey of 1,000 participants, 65% of respondents said they would elect a lump sum payment, while 26% stated that a lump sum was more appropriate to pay bills.[iv]
So if that many people wanted a lump sum payment then why aren’t they selling? In a review of 100 recent factoring transactions it was revealed that the average discount rate was 13.75% with 7.5% being the lowest and 20% being the highest. So you have to question whether the 93.4% of individuals that chose not to sell would have changed their mind IF the discount rate was closer to the 7.5% rate.
As structured settlement annuity premiums continue to decline (10% from 2010 and 20% from 2008)[v], there will be fewer annuitants available to market. While it seems perfectly logical that this would in fact lower the discount rate, if one looks at current trends it mostly will not occur.
For example, the top three companies spend millions of dollars a year in order to entice annuitants to sell. They’re all well established and are household names. Smaller, lesser known companies cannot afford to go head to head in advertising spends with these industry giants so they tend to focus on non-traditional marketings. While some sellers will seek out these smaller players in order to obtain better rates more often than not a first time seller will call one or two companies they see on TV. Which basically means they are going to receive rates of 13% or higher.
While the decline in annuities does not currently seem to be an issue for J.G. Worthworth/Peachtree who already completed a $244 Million Securitization this year[vi], one has to wonder whether primary market decline and increased competition combined with well informed, tech savvy consumers could adversely affect their business in years to come.
J.G. Wentworth had securitizations worth $469,000,000 in 2011 and $579,000,000 in 2010.[vii] This represents 9.4% and 10% of the annual premiums for those years.