When asked, many American families say that their largest problems are economic in nature. Over 40% of families spend more money than they earn. In total, the average American household pays $950 in interest every year. There are many ways to reduce debt; for those with an annuity settlement, waiting for payment is simply not a viable option. Here’s what you need to know about annuity settlements and how to turn them into a lump sum of cash.
Receiving a Lottery Annuity
Studies have shown that the lottery is the most popular and widespread form of gambling in the United States. While everyone dreams about winning the lottery at some point, certain fees and stipulations can turn that dream into a nightmare. Upon winning the Mega Millions or Powerball lotteries winners receive an initial payment followed by 29 annual payments that increase by around 5% each time. Right off the top, the federal government taxes the winnings for 25% of its value; an additional 5-10% may be taken off depending on which state you live in. Many annuities come with annual maintenance fees and those who try to withdraw their money preemptively receive certain fees as well.
Receiving a Structured Settlement Annuity
A structured settlement is commonly awarded outside of court to resolve a civil dispute or accident case. Around 25-30% of all accident victims use all of the funds from their structured settlement within two months of recovery, and 90% exhaust the money within a five year period. Like a lottery annuity, a structured settlement annuity comes in annual payments with all the fees and stipulations one would expect of the bank. Some people simply cannot wait and need to get settlement money now!
The Benefits of Selling an Annuity Settlement
Those who need to get settlement money now can always sell off their settlement payments. Selling off your annuity will not get you 100% of your winnings, but it will get you the largest lump sum you can get for your annuity anywhere. Get free from all the fees, sell your annuity payments today and let your cash work for you.