It can be difficult getting out of debt when you’re low on cash or have a bad credit score. When it comes to annuity settlement you have the option of obtaining cash over a period of time to better help you pay off that car you need or the house you’ve been dreaming of. Below are a few tips to familiarize you with selling a structured settlement, how annuity works and how it’s benefited people in similar financial positions.
Debt In America
It’s estimated American consumers owe over $11 trillion in debt. The most common causes for debt include, but are not limited to: student loans, tuition, medical bills, mortgage and car loans. It’s been found that outstanding student loan debt has climbed from $1.2 trillion to $1.3 trillion from 2014 to 2015, with few signs of slowing down.
With so many different causes for debt, many credit scores suffer from an inability to pay in full on time. A whopping 20% of credit reports are hurt by overdue medical bills alone, while it’s found the average American home has 13 payment cards. Low credit scores hamper a person’s ability to acquire loans or apply for rent in the future.
The year 2010 saw the average cost of new homes at around $270,000. The majority of mortgage lenders require a down payment of at least 5%, and at most 20%, of the final sales price. American adults average at $70,000 on mortgage rates alone.
What Is Annuity?
Annuity grants you a certain amount of money every year, similar to how insurance functions over time. Annuities are available in a variety of time lengths and payout periods, with the most common acting out over the course of 25 years. You can later invest this money by selling a structured settlement.
Selling A Structured Settlement
Getting cash in structured settlement payments can assist you in paying off some of the most common forms of debt by drawing into the financial earnings from lawsuits or lottery winnings. Lottery play is the most popular form of gambling in the United States, which can translate into you paying off your debt fast if you generate your winnings responsibly. Consider annuity if you find yourself with extra cash to better pay off your debt and get what you need in a timely fashion.