Many Americans have been experiencing hard times thanks to our economy. Sometimes, things we once took for granted such as having a new car or a nice home, are considered luxuries that are out of reach. So what can you do if you can’t afford your car payments?
Refinance – Sometimes refinancing your car loan may lower you payments to where they’re affordable. Sometimes even with refinancing the payments are still too high. It helps if you can put a little money down.
Sell it – Look at online pricing guides to determine your cars value if you were to sell it privately. Make sure you clean it and wax it to maximize its worth.
Lease transfer – If your car is leased it will be expensive as well as difficult to get out of the contract. However there is one way that won’t affect your credit score and is significantly cheaper than early termination. You can transfer the lease to another person through the use of a third party agency.
Sell used items – Many times there are items in your home that you’re not using that you can sell on websites like eBay, Craigslist or Amazon for cash you can use to make your payments or pay down your loan.
Sell illiquid assets – If you have a single premium annuity, structured settlement annuity or other periodic payments you can sell some of your future payments for a cash lump sum. Use the money to pay off your car as well as other high interest debt. There are no credit checks and since it isn’t a loan you won’t have to pay the money back.
Paying off your car loan not only helps you with your creditors, it saves you money. For example, if you financed $18,000 for 60 months at 9.5% interest your payments are $378/month. At the end of the loan you would have paid $4,682 in interest so your $18,000 car actually costs $22,682. If you decided after a year to pay off your balance in full ($15, 047) you will save yourself $2,979 in interest.
If you're having trouble paying for your car and you also have credit card debt, it makes sense to pay that debt off immediately. For example, if you had $18,000 in credit card debt and the annual percentage rate was 19.8% interest; your minimum payment is $360. If you only paid the minimum, it would take you 8 years and 9 months to pay it off and you paid $20,342.04 in interest. By paying $1,800 a month you will have your balance paid off in 1 year and you will only pay $1,833.78 in interest thereby saving you $18,508.26 in interest. Obviously if you paid off your debt completely, you would save thousands in interest.
If you’re looking for a way to get rid of your debt, avoid repossession, avoid foreclosure or purchase a car without payments selling some of your future payments to Rescue Capital for a cash lump sum may be your best option. To learn more about our program and how we can help you, call 866.688.3532.
Sometimes stuff happens that is out of your control and you need money fast. Perhaps you thought of using a payday loan, title loan or refund anticipation loan to get yourself out of a jam. What most people find is that they only dig themselves deeper into their financial hole because these loans are so expensive and risky.
What if I told you there was a way to get the money you need now without having risk of high interest loans with reoccurring payments? It is really a very simple concept that can give you access to your future money today, in the convenience of a lump sum payment. So what’s the catch? Well you need to have periodic payments from a structured settlement annuity, divorce settlement, a single premium immediate annuity, life insurance policy, inheritance, royalties, or a pension in order to take advantage of this program.
With the Illiquid Asset Purchase Program from Rescue Capital, you can sell some of your future payments for a lump sum cash payment. Rescue Capital has an A+ Rating with the Better Business Bureau and offers the best rates around. They’re rates are much lower than high interest loans and credit cards. There are no income requirements or credit checks because selling your future payments isn’t a loan. There is no affect to your credit score and you can’t default. You do not have to pay any of the money back either.
According to John Zepeda at Rescue Capital, "In our current economic climate we are seeing many people who living paycheck to paycheck. So when an emergency happens they’re in a real bind. Luckily, they can use a portion of their future payments to get the money without incurring more debt."
Rescue Capital’s team of experts will guide you through the entire process to ensure all your financial goals are met. Many individuals think that they have to sell all their payments and they don’t know about other options such as deferment. With a deferment you can delay selling your payments for several years, which allows you to get the cash now but your periodic payments won’t be reduced until later.
According to Rescue Capital, COO Maureen Healy, “Sometimes you need a small amount of money to get back on your feet such as money to move or start a business. In those cases a deferment makes a lot of sense.”
Rescue Capital can provide you with a free market analysis of your asset as well as no-obligation written quote.
As you may be aware there are many companies as well as brokers involved in the structured settlement factoring industry. There are also quite of few hired guns posting and tweeting about how and why you should sell your future payments to whomever they are representing. One of my biggest complaints is that on many occasions I have come across posts that are blatantly wrong, misleading or confusing to even industry professionals. Is it SEO, lack of industry knowledge, language barriers or creative marketing that causes bloggers and copywriters to post statements that are somewhat questionable?
I decided that it might be fun to grab a few of my favorites and play a game called Structured Settlement True or False.
How to play: Simply decide whether the statement is true or false.
- You have more security when you sell your future payments to a real FDIC insured bank.
- FALSE: When you sell your annuity payments, which aren't FDIC insured, you're selling the rights to the annuity payments in exchange for a cash lump sum. FDIC doesn't have anything to do with annuities or the transaction unless, of course, you decide to deposit the money into a bank that becomes closed by a federal or state banking regulatory agency.
- FALSE: Yes, there are some people in the industry who are brokers but it is not the general rule. Companies like Rescue Capital actually purchase your payments.
- FALSE: Banks need to make a profit too otherwise they would go out of business. Every company that purchases future payments has some sort of overhead and need to charge accordingly. Publicly traded banks have to worry about their shareholders and the perceived value of their stock. That value comes with their ability to make a profit. Smaller, agile privately owned companies can charge significantly less because they have lower overhead.
- FALSE: Is this author unaware of all the recent banking scandals? Remember folks, when you sell payments they need to be approved by the courts. Most companies would like their customers to be happy, have repeat business and referrals. No company can survive in the long-term if they were stealing from their customers.
- FALSE: I guess there are no new banks and banks never fail. There are many companies that are established in the structured settlement factoring business. Being an established bank is irrelevant since these individuals don't necessarily know the ins and outs of the industry. Some industry professionals have more than 18 years experience in the structured settlement factoring industry and are considered to be subject matter experts. When you sell your payments you should more concerned with industry experience, pricing and company reputation.
- FALSE: When factoring companies purchase your payments, they resell those payments to individual investors or through a process called securitization which combines all the annuity payments into one large pool, the issuer can divide the large pool into smaller pieces and then sell those smaller pieces to investors. The process creates liquidity by enabling smaller investors to purchase shares in a larger asset pool. Individual retail investors are able to purchase portions of the annuities as a type of bond.
- FALSE: A structured settlement is a financial arrangement. An annuity is a financial product that provides a series of payments over a specific period of time such as a lifetime. Delivered on a set schedule, these payments can be paid monthly, quarterly, biannually, or annually. There are many different types of annuities but they are typically sold by insurance companies. Many individuals purchase them in order to have a reoccurring source of income during retirement. As in the case of a structured settlement, the insurer, or designated third party, purchases an annuity from a life insurance company in order to provide periodic payments to the claimant. When you win the lottery you have the option of receiving a cash lump sum or an annuity. This is not a structured settlement.
- FALSE: Before 1970, when a lawsuit was settled the injured party would immediately receive a cash lump sum. Then there was a major liability case in Canada and Europe that resulted in a great percentage of catastrophically injured people. Suddenly there was a need for settlements to last throughout the injured party's lifetime. Hence, the modern structured settlement was born. In order to protect the annuitant, Congress enacted legislation that made compensation paid as a result of a personal injury tax free to recipient. Congress later enacted additional legislation which gave insurance companies tax benefits for setting up structured settlements.
- FALSE: These payments are paid by an annuity which is a financial product that provides a series of payments over a specific period of time such as a lifetime. A structured settlement is a financial arrangement that allows court-awarded compensation to be paid in regular installments rather than in one lump sum.
- FALSE: The need for income to last throughout the injured party's lifetime is the reason they are popular. Plus there are tax benefits to having a structured settlement.
Even before Halloween came and went, retailers started working on Thanksgiving, Hanukah and Christmas displays. Today alone, my mailbox contained at least 5 Christmas themed catalogs. As much as I hate to admit it, the holidays are just around the corner; 17 days until Thanksgiving and 47 shopping days until Christmas. For many, this time of year is a time for making plans with family and friends. For others it is a brutal reminder that things are a little tight.
While I don’t think it is a wise decision to sell illiquid assets to carelessly spend the money on the latest toy or trinket, I do think certain situations call for these transactions. For example, your car is broken down, your credit cards are maxed out or you have to decide whether to pay your electric bill or eat this week. For individuals who are struggling financially, it makes sense to sell your future payments for a cash lump sum.
Maybe your car is fine but your home needs repairs or you can’t afford to pay your mortgage. You might want to consider selling a portion of your future annuity payments to get the cash you need to get back on your feet. You should also ask about how to defer selling your payments for a couple of years.
Perhaps you are in need of cash but do not have an annuity or periodic payments from a structured settlement, what can you do? If you have any type of periodic payments such as a pension, cell tower lease, mortgage note, divorce settlement, royalties, etc., we may be able to help you. Just give us a call at 866.688.3532 so we can evaluate your asset as well as provide you with a free, no-obligation quote.
We understand that selling your future payments or a life insurance policy for cash isn’t for everyone. Research a few companies with the Better Business Bureau, learn about the process, get a few quotes, think it over and decide if this is the best solution for you. If you do decide to sell, you owe it to yourself to call Rescue Capital. Rescue Capital will be by your side throughout the process to ensure that things go smoothly. Our expert staff has more than 30 years combined industry experience and we offer some of the best rates around.