If your bills seem to be mounting higher and higher, recent studies show that you are in the same financial situation as about one-third of American adults. Almost 65 million Americans reported recently that they are working to pay down medical bills and other living expenses like auto loans and school debt. Most American households have more than three credit cards, and paying the minimum amount requested by most credit card companies could leave you paying off more interest than debt.
For example, paying $50 a month on a credit card balance of $2,000 with an interest rate of 18% means that you will not pay off the full amount for more than 15 years. Along with the initial $2,000, you will also pay more than $2,000 in interest. So a purchase of $2,000 will end up doubling in cost and taking more than a decade to pay.
People who win lawsuits or the lottery have to consider the amount that they pay in interest — on credit cards, on their mortgages, on their car loans — when they consider whether to take their settlement over a period of decades or in a lump sum. A good place to start on the internet is to search for “sell structured settlement calculator.” Plug in the amount spent on school, car, and home loans, and determine whether it is worth waiting for a structured settlement to mature. For a medical malpractice victory of $500,000, administrative costs could total as much as $15,000, with further taxes and fees for early withdrawal.
Taking the time to work with a sell structured settlement calculator, either on the internet or in person, could help determine whether it is time to consider selling structured settlement annuity benefits for cash. If there are any costs to conversion, they may eventually outweigh the money that would be spent on administrative fees: consulting a sell structured settlement calculator or a professional finance office is advised.
Most people who win lawsuits do spend their money within five years, expert studies show, but they may not be aware of the fees and taxes that are involved and could continue paying thousands of dollars of fees every year. Making progress toward getting cash for structured settlements could begin with a simple internet search and end in the office of a professional finance company, but it is important to research the taxes and fees involved in the course of making major financial decisions.