Rescue Capital Blog Your Money, Your Way

8Jul/13Off

Getting a free quote is easy at Rescue Capital

Posted by Rescue Capital

Stress free quoteI know that I am not alone in saying that calling in to a business to get a free quote can sometimes be stressful. Whether it is for insurance, some product or service you may be interested in or more complicated stuff like financial advisors, the process can, at times, be less than enjoyable. You could get a pushy salesman who won't take no for an answer. You could get someone on the line who is new and doesn't have any answers to your questions. You sometimes could get sucked into the old bait and switch or be persuaded to do something that is not in your best interests. At Rescue Capital, we try our best to make it easy and stress free every time.

When you call in to Rescue Capital, we are committed to helping you get all the information you need in a timely fashion. We will  answer any questions you may have about the process of converting future payments of a structured settlement annuity into a lump sum of cash. We will review with you all the options available for you and then we will let you take the time to make your own decision. Our Team has many years of experience dealing with all types of situations and helping those with many different needs. We know and understand how to help people get cash for their structured settlement annuity payments in every state and from most every insurance company out there. 

So, give us a call at 1-866-688-3532 and let us see if there is anything we can do to help you. If you don't have time to talk to us right away, then simply fill out out our online quote request form and we will get back with you when it is more convenient for you. 

 



3Jul/13Off

Should I sell my structured settlement to pay off medical bills ?

Posted by Rescue Capital

So you or someone you love just went through a very tough time. You survived a bout with the american health care industry. Dealing with the competing interests of the doctors, the hospitals, the specialists, the insurance company and trying to find a way back to health all at the same time can sometimes lead to a high level of stress and anxiety. After adding up all of the co pays, the prescriptions, the tests, the uncovered procedures and surpassed insurance coverage limits, you could now be sitting with a large amount of personal debt that you owe because of it. So, what options do you really have ?Rescue Capital can help you pay off your medical bills

Well you could blow it off and let it destroy your personal credit. You could agree to make payments with interest for a very long time.  You could borrow money from someone else to pay it off and then make payments to them.  None of these options would be advisable for some of you. If, on the other hand, you have a structured settlement annuity, you could pay off all the medical bills in one swoop and be done with it.  The larger question is, should you ?

If you are living paycheck to paycheck, you may never be able to pay it all off. The interest alone could make it near impossible. According to the structured settlement community, paying off medical bills is one of the most popular and well regarded reasons for cashing in a structured settlement annuity. When looking toward your best interest, the courts usually see paying off medical bills as a very plausible reason to sell structured settlement payments for a lump sum of cash.

This is one of the many reasons that Rescue Capital is here for you. We know you want to get on with your life and live it as full as possible without the stress and anxiety. We help people like you every day. Give us a call at 866-688-3532 and one of our experienced consultants can discuss what options are available for your situation. If you don't have time right now, simply fill out the quote request form here and we will get back with you at a more convenient time.

 

 



7Jun/12Off

Structured Settlement Surveys: Are they statistically relevant?

Posted by Dawn Anderson

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.


 



7May/12Off

Structured Settlement Bone Yard

Posted by Dawn Anderson

For as long as I can remember people have hated the industry I worked in—structured settlement factoring; terms such as white hat and black hat were often used. Financial professionals as well as some consumers have often compared us to the modern day equivalent of snake oil salespersons because we buy future payments. They imply that we’re doing something wrong for providing liquidity to assets that annuitants can’t use as collateral.

Lawyers and legal settlement planners with their crystal balls create settlements for individuals, planning out their future financial needs. At settlement or during a mediation they do what is believed to be best for the plaintiff and potential structured settlement recipient, but, in reality, we can’t foresee the future and the only certainty in life is death and taxes. People lose jobs, get divorced, owe taxes and suffer from illness without notice. Life changes and so do people’s financial situations. That’s why structured settlement factoring exists.

Financial pressure can be enormous. Sometimes people are desperate enough to do anything to get out of their situation and will make hasty decisions. Other times they just know what they need. They have weighed the options, done the math and selling some of the future payments makes sense. They don’t have to sell all the rights to their future payments, just enough to get what they need to help themselves out of a tough situation.

In every industry there are a few individuals or companies with questionable ethics. There are also companies where integrity and ethics prevail. These companies offer competitive pricing and look out for their clients’ best interest. Their rates are consistently lower than most credit cards, cash advances and payday loans. Also since selling future payments isn’t a loan they annuitant isn’t creating additional debt.

One huge misconception is that all factoring companies pay only a small fraction of what the payments are worth.  That is to say, the present value of a future payment today will be less than the principal amount when it comes to maturity.

Here’s an example that will help you understand. Let’s say Jane is offered the choice of $100 today (present value) or $100 next year what should she do? Take the money now because it is worth more now than in the future. When buying structured settlement annuity payments, a factoring company uses a mathematical calculation to figure out how much your future payments are worth in today's money taking into account inflation rates and interest rates. In addition, if Jane took the $100 today and invested it she would have more money in a year.

Many detractors want you to believe that the annuitant would receive a microscopic amount compared holding onto the annuity. They fail to consider the future value as well as the diminished buying power of the money. Seriously folks do you think the factoring industry would still be around if people were being swindled out of their money? Forty-six US States and the Federal Government have enacted consumer protection statutes to make sure these transactions are in the best interest of the seller. If New York State is an indicator, contracts with ridiculous rates will not be approved.

Selling future periodic payments isn’t something that should be done in haste. By researching the companies before you call them you can avoid the hassles of dealing with companies with bad reputations. If there are no complaints with the Better Business Bureau AND your state attorney general’s office, call for more information. Don’t be afraid to look on the Internet to see if others are complaining on websites like Rip off Report.

Make sure you get a few quotes before you sign on and get everything in writing. Don’t just take the company’s word for it, read everything they give you. Beware of hidden fees, bait and switch offers or salespeople trying to pressure you into signing. If you don’t understand what you’re reading have a trusted advisor review it. In a dog eat dog world of finance, don’t be caught wearing milk-bone underwear—look at for you and your best interest.