Credit card debt fell slightly for July, August and September to $693 billion and the number of open credit accounts fell by 6 million, 23% down from its peak in 2008, according to a recent report released by Federal Reserve. Could the recent fall have to do with the pending holiday shopping season? Perhaps, since consumer spending for Black Friday/Cyber Monday was up considerably from last year.
One would have expected to see a decline in holiday spending due to stagnant wages and a 9% unemployment rate. Surprisingly consumers, enticed by the deals on consumer electronics, caught the shopping bug and whipped out the credit cards once again. Unfortunately for individuals who couldn’t resist the temptation, their recent shopping spree may have sent them into a debt spiral.
Even though there are tons of articles about budgeting and getting out of debt many people don’t realize they are in trouble until they’re in over their heads. What could have been fixed with budgeting, reallocating and cutting back now requires more drastic measures such as liquidating your assets. For some that means selling their home or borrowing from their 401k plan. For others it means selling their illiquid assets such as their future payments from an annuity, pension or settlement.
Selling may not seem like an ideal thing to do but if you are looking to get back on your feet, paying off high interest debt is a step in the right direction. Interest rates are at a historic low so buyers are offering some of the best rates in years. These highly competitive rates result in more money in your pocket. In addition, by paying off your debt you save money on interest payments making it a double win!
If you’re having financial difficulties and are considering cash out some of your future structured settlement annuity payments for a lump sum, give Rescue Capital a call at 866.688.3532.
We can explain all the options available to you and provide you with tools to determine whether selling is the right choice. If you decide to sell your payments, Rescue Capital’s team of professionals will be by your side throughout the entire process ensuring that everything goes smoothly.
Dear Rescue Capital,
I have a life insurance policy that I no longer need. I am looking to cash out and use the money to fund my retirement. What are my options?
Annalisa in Chicago
Since you are looking to obtain funds, you have two options. One is to surrender the policy for the cash value to the life insurance company. The second is to sell your policy on the secondary market. This type of transaction is called a life settlement and typically yields significantly more than the surrender value. If you are interested in discussing your options, please call us at 866.688.3532.