#SettlementMoneyCompanies #SettlementPayments #CashInYourPocket
What Are Settlement Money Companies?
Settlement money companies are firms that specialize in purchasing some or all of an individual’s future structured settlement payments. This process allows individuals to access their money sooner than waiting for the scheduled payments to be made over time.
How Does It Work?
When a settlement company buys someone’s future settlement payments, they provide a lump sum of cash in exchange. This lump sum is typically less than the total value of the future payments, but it allows the individual to receive a significant amount of cash upfront.
Benefits of Using a Settlement Money Company
– Access to Cash: By selling future settlement payments, individuals can access their money quickly rather than waiting for periodic payments.
– Financial Flexibility: The lump sum provided by settlement companies can be used for various purposes, such as paying off debt, making a large purchase, or investing.
– Streamlined Process: Settlement money companies streamline the process of selling future payments, making it easier for individuals to get their money fast.
How to Choose a Settlement Money Company
When looking for a settlement money company, it’s essential to do thorough research and compare offers from multiple companies. Consider factors such as the company’s reputation, fees, and customer reviews before making a decision.
Final Thoughts
Settlement money companies offer a solution for individuals who need access to cash quickly by buying some or all of their future structured settlement payments. This process can help clients streamline the process of getting their money and provide financial flexibility for their needs. If you’re considering selling your future settlement payments, be sure to do your due diligence and choose a reputable company to work with.
The settlement company gives the customer the present value of the settlement in a lump sum and then collects the regular payments from the original settlement for themselves.
I am not an expert on this so others may chime in with better information but, my understanding is that if you are getting a series of payments (say $100 a year) for 20 years, the total expected would be $2000. The company buying your payments offers you a lower amount now (including an estimate of the present value of those payments and some profit for them) and you essentially sign the payments over to the company. So you might get $1000 today but that then will be all you get and the company gets the $2000 over time.
And now I have “*I have a structured settlement and I need cash now, call J.G. Wentworth 877-CASH-NOW*” [stuck in my head](https://www.youtube.com/watch?v=FbQt8pYUY6Q). Thanks. 😛
But to answer your question, it’s basically a loan.
Instead of, say, $1,000/month for 10 years (which totals up to $120,000 at the end)… a company offers to give you a single lump sum of $80,000 now, and behind the scenes all the future payments go directly to the company instead of you to pay them back.
Note that in this example an *extra* $40,000 goes to the company behind the scenes as interest. You get $80,000 now, the company gets $120,000 in total payments from the settlement across 10 years.
How much the company takes for themselves is going to vary – but the company needs to take into account projected inflation and interest, and still make a profit on top of that. So expect to take a decent haircut.
Is it worth it? It all depends on how quickly you need money. But you’re certainly not going to come out ahead.