How To Use Your Settlement Wisely

by jdminvegas on August 10, 2011

How to Use Your Settlement Wisely

You’ve finally been awarded your personal injury settlement. You’re excited to finally move on with your life, but now you’ve got another problem to deal with. You have a number of unpaid bills, and collection agencies have now begun to contact you. Although it’s nice to receive monthly payments from your settlement, it’s just not enough to pay for the enormous amount of debt you find yourself buried under. If you’re in this situation or just need some money quickly, you should consider selling your structured settlement for a lump sum payment. In this article, you’ll learn about the various options you have when selling your settlement.

Full Payments

As the name suggests, this option allows you to sell your entire settlement for a lump sum payment. The company you work with would begin to receive the payments that you currently receive, and, in exchange, provide you with one large payment. This amount would be less than what you would receive over the course of the entire payout, but if you’re in need of money right now, this could be the best option for you. If you have a large hospital bill or are facing foreclosure, this might be the only way to avoid bankruptcy or save your home.

Partial Payments

Another option to consider when selling your settlement is the partial payment. Instead of allowing a company to obtain the rights to all of your future payments, you could simply sell a portion of each monthly payment to get a lump sum amount. If you needed to purchase a new vehicle, you could choose this option to get the money for a down payment. You would still receive monthly payments, albeit at a lower rate than normal. As with the full payment option, your lump sum payment would be offered at a discount to what you would receive over the course of the entire settlement.

Shared Payments

With shared payments, an individual can sell a piece of their future payments for a lump sum. If you’re entitled to a future payment of $25,000, you could choose to sell $10,000 of that payment at a discounted price. You would then receive the remainder, $15,000, when the payment is due. This is another option that gives you a bit of flexibility when it comes to deciding how you want to receive your money. If you have bills to pay or an unexpected emergency occurs, you would have the funds necessary to support yourself and your family.

If you’re in need of money and your structured settlement isn’t covering your expenses the way that you thought it would, you should seriously consider selling your settlement to a factoring company. You’ll be able to choose from the various options described in this article, and decide which option is best for you. Make sure that you deal with a reputable company, and choose one that understands your needs and goals. The right company will steer you in the right direction and show you whether selling your settlement is the best choice for you.


Herbert Santos is a content contributor for, a personal injury attorney Anchorage based firm, specializing in personal injury accidents.




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