Millions of Americans are struggling with crippling debt that affects their quality of life and impacts every decision they make. There are many ways to start chipping away at your debt, including paying more than the minimum payments, borrowing against your life insurance policy or 401(k), or renegotiating terms with your creditors. However, another effective debt payoff strategy is to use structured annuity payments you may be receiving to pay off debt.

If that’s a route that you’ve considered, but aren’t exactly sure how it works, here are some tips and advice on making the most of your structured settlement annuities.

The Many Types of Debt

People fall into debt for a variety of reasons, and it’s not necessarily because they’re bad at financial management. Credit card debt is a common type of debt that impacts Americans’ lives; however, student loans and medical bills play a substantial role.

If you have structured annuity payments coming in on a monthly basis, those payments aren’t often flexible. This is problematic for people in debt because of the slow pace of money coming in and the interest rates when you can’t pay off your debt at a faster rate. If scheduled annuity payments aren’t right for you, you may have the option to sell those payments for a lump sum and develop your own personal strategy to tackle your debt.

An Alternative Option to Loans

Some people concerned with debt choose to take out a loan. For example, home equity lines of credit for can be used as a way to pay down your debt.

However, selling structured settlement payments can be a good alternative to taking out a loan. That’s because loans require credit checks and leave you with even more debt.

Making the Most of Your Structured Settlement Annuity

The average American household owes at least $4,717 in credit card debit, and that’s not even counting car payments, student loans, and mortgages. You’re not alone in your struggle with debt, but rest assured that there is a solution that’s right for you.

Looking for More Information on Structured Annuity Payments?

There are many debt payoff solutions to consider before using your structured settlement payments, but this is an option that has worked well for many people. Contact the structured settlement annuity experts at Novation to learn more about your options.

*Novation is not a financial advisor or consultant and strongly recommends that you speak to a lawyer or accountant before making any significant financial decisions.