Looking to get upfront cash for your structured settlement payments? There are many positives when trading for cash as opposed to borrowing. Borrowing can lead to more debt that’s subject to fluctuating rates and puts you at high risk of losing your home, car, and savings.
A structured settlement payout would allow you to pay down any debt you might have and there’s nothing to pay back. Having cash upfront allows you to start fresh and feel more secure about your future.
Here are several reasons why trading for cash is a better option than borrowing.
| Selling For Cash Now | Borrowing and Other Investments |
|---|---|
| Paying down debt can improve your FICO credit score. | Amounts owed is a major component of the FICO credit score – more debt can hurt your score. |
| A low credit FICO score has no impact on your ability to sell your settlement payments for cash. | A low credit FICO score means that if you can secure a loan, it will be a high interest loan. |
| Payment is locked and not subject to fluctuating or floating interest rates. | Predatory lenders are likely to increase interest and fees over time. |
| Cash received from your structured settlement is not taxed. | Cashing in other investments, such as stocks, are subject to high capital gains taxes. |
| Inflation means your dollar today is worth more than your dollar tomorrow. Since 1926, the average inflation is roughly 4%. | At 4% inflation, $1,000 in 10 years is worth only $676 in today’s dollars. (Over a 32% loss in value!) |
| Cost of living continues to increase – your dollar goes further today than tomorrow. | As the cost of living increases, the value of your money will continue to decrease over time. |
| Court decides that the transaction is in your best interest. | A predatory lender will make loans on terms that put everything you own at risk. |
