Does It Ever End?

How often do you ask yourself…“Does it ever end?” The answer to the question is no, not really. So many families today live paycheck to paycheck, barely keeping their nose above water. Being in a financial struggle can be exhausting and destructive in all aspects of your life. With home prices still on the rise and the economy going flat, the “end” we all search for is nothing but a mirage.

There is no true end to bills. Regardless of how much money you have, you still need to make payments to someone for something. Changing the perception of money, bills and other financial obligations is an important step towards financial happiness. If finances were considered an ongoing process that need to be managed and maintained on a weekly basis it would be less overwhelming to take them on all at once. However, the common way of dealing with monetary issues is to avoid them until they absolutely need to be dealt with.

As a structured settlement recipient you have the option to sell your future payments for the cash you need now to relieve your burdens. However, if you don’t have an effective plan for maintaining financial stability after your affairs are settled, you may end up in the same situation you are in right now. It is not uncommon for people with budgeting difficulties to fall back into the clutches of overwhelming debt after obtaining a large sum of money.

It is important to determine where the root of the problem lies. If poor spending habits put you into the position you are in you should consider debt consolidation or setting a structured budget with a financial advisor or consultant. If your debt resulted from unexpected things that were out of your control, consider all of your options before making any decisions on your annuity.

If you have no other source for the money you need, than selling all or a portion of your future payments may be your only option. Realize that the cost of selling your annuity is high. Your settlement was designed to provide consistent income over a period of years. Advancing those payments for a cash solution now will not yield the full amount of your annuity. The annuity’s value is based on the settlement amount plus interest accrued over a period of time.

Consult an attorney and a financial advisor before making any decisions on your annuity. There are financial companies that specialize in purchasing and restructuring settlements and annuities. Negotiate the fees and costs with these different companies to get the best offer possible. You can sell a portion of your payments, your entire annuity or restructure your payments to accommodate your current financial needs.

Once you have researched into your financial situation fully, you will be armed with the information to control it. Everyone makes bad choices at some point in their life and on any given day something completely unexpected can be thrown in our laps. The more knowledge you have about your assets, the more power you have to use them to your benefit.