In this economy so many people have been hit with financial stress from loss of job to lack of hours at their job to mounting debt. Options for getting cash are not like they were even 5 years ago. The ability to get personal loans is almost non-existent and there is only so much that we can put on credit cards. So, what do I do if I need to get money today? Below we will look at your options and discuss how to determine which way to go now to get cash in this market including whether you should explore the choice to sell my annuity.
Should I Just Use Credit Cards instead of Choosing to Sell My Annuity?
Unfortunately, this is the default for most people when they need to buy something but don’t have the cash available to pay for it. Credit cards have been so easily handed out over the years that we have become reliant on this form of credit. The unfortunate part about credit cards are that many do not pay off the debt each month, which leads to a compounding debt and growing interest. Let’s take for example that we want to use our credit card to pay for holiday gifts for the family. The amount we put on the card is $2,000 with the idea that we will pay it off over time. The challenge is that if we don’t pay it off the next month we are going to be subject to the credit card interest anywhere from 10% – 30% depending on the card and credit. Most cards these days carry an interest rate in the high teens which means for the first year of that $2000 you could be subject to interest of $380.00. So next year you are potentially subject to the $2000 plus the $380.00. As you can see this can lead to a bad situation as we are mostly creatures of habit and don’t stop with the $2000 for the holiday but continue to add to the balance. Many that contact us and ask, “can I sell my annuity payments are using the money to pay off credit cards because the debt on the cards has gotten out of control and their minimum payment is more than they can handle each month. So putting debt on a card for an important purchase may not be the best idea as this may lead to more debt that becomes harder and harder to pay off.
Should I Get a Personal Loan Instead of Choosing to Sell My Annuity?
During the 1990’s and into the 2000’s this was a reasonable thought to get a personal loan if you needed some money for an important purchase. As the credit markets were much loser back then, some could go and get a personal loan or, as some call it, a signature loan. When the credit requirements were much lower, you may have been able to get a loan for a few thousand to cover a pressing need like fixing the house or paying for medical bills. Those days are unfortunately mostly behind us as banks are requiring collateral and rather high credit scores in order to get access to a loan. So if this is not an option, then what can someone do to get some cash for an important purchase besides choosing to sell my annuity?
What if There are Not Other Options Besides Choosing to Sell My Annuity?
For many people if credit cards are not an option and a personal loan is not an option, then they are just stuck with not having access to the cash they may need now. However, for the small few of you who have an annuity from a lawsuit, then you have another option. You could choose to say I want to sell my annuity payments either in full or part and get some or all of the money today, instead of waiting. For most people, they choose to sell only a portion of their payments to raise the money they need now. The good news is that this is a sale of the future annuity payments, so by selling your payments your credit is not affected nor is your credit used as a determining factor for approval. As far as the cost to you sell your annuity, first there are closing costs much like any other financial transaction,however these costs are related to the process of having a judge approve the sale of the annuity payments and the administrative fees the insurance company charges. Second is the discount rate. Rates for Mainstreet Funding deals are some of the most competitive in the market. Be aware of any company that wants you to sell your annuity payments for a rate near the high rates many see on their credit cards. If a company tries to charge you a rate in the high teens or twenties then you need to run to Mainstreet Funding where we believe you deserve a fair deal every time when you look at the option and make the personal decision to sell my structured settlement payments.
To learn more or get a quote on your structured settlement, contact one of our friendly and knowledgeable annuity purchasing representative, who will be happy to answer all your questions in a no pressure environment. Contact us at 1-877-919-8003 or complete the form on this page and one of our representatives will contact you.