Cashing in Your Structured Settlement

Cashing in a structured settlement is a huge decision in today's economic climate. If you do decide to sell your monthly income in lieu of a lump sum payout then there are a couple of things that you may need to consider very carefully first.

Why do you want to cash it in? If you want to pay down debt or a mortgage this could save you a lot of money. If you are thinking of trading it in to buy shares or bonds then you probably need to discuss this with your bank or stockbroker. If you want to go on a long vacation right now you may need to discuss this with your family and or bank manager.

How are the family finances depending on that monthly income? If it is removed, will its absence cause other problems?

How much are you likely to lose by selling your structured settlement? Sometimes this can be exorbitant and needs to be weighed up and considered very carefully. You will have to lose some because the buyer needs to be compensated for his risks in purchasing it.

If you sell your structured settlement in order to pay off your mortgage, how much interest will you save when compared against what you will lose by selling early?

The reason you will lose money by selling early is because the stock broking firm or bank or whoever you decide to sell it to will try to get it for as low a payout as possible. Having said that, the person or organization that purchases your settlement agreement will be taking a degree of risk and will expect compensation. This is fair and reasonable. As to how much compensation he gets is up to what you or your banker or whoever you decide to be your negotiator in this transaction, can limit the cost down to. The really important thing to know and remember here is: Don't Sign Anything.

No matter what, just don't sign anything under any circumstances until you are sure and happy with your agreement. Once you sign a document without checking it thoroughly yourself or better still, have a lawyer read it over first, you may have signed something with a 'small print' clause that gives them first option to purchase or something underhand like that.

Once you sign something and you aren't happy with the negotiations, you lose your "walking Power". While ever you still own your structured settlement and all the rights to it, you are still in the best negotiating position. If you aren't happy with the deal, you are under no obligation or commitment to continue negotiating with that person or organization. You have the right to walk away and sell it to someone else.