Diversifed Funding Alliance ("DAFUSA") out of Illinois has ideas that are just "DAFT" (i.e."Dumb as a Frickin' Toenail") Among the bright ideas that DAFT says you should sell your structured settlement payment rights (and pay a likely effective discount rate of 18-25% ) for:
To Take that well deserved vacation
Other DAFT brethren have bought into the "canned idea" that a "financially sound reason" (NOT!) to sell structured settlement payment rights (and pay these kind of rates) is to build a new kitchen.
DO NOT SELL YOUR STRUCTURED SETTLEMENT PAYMENT RIGHTS TO TAKE A VACATION, WELL DESERVED OR OTHER WISE! Read Jennifer Beam's "Taking A Break Without Breaking The Bank".
DO NOT SELL YOUR STRUCTURED SETTLEMENT PAYMENT RIGHTS TO RETIRE!
STAY AWAY FROM "CANNED" IDEAS! Refusa DAFUSA!
Consider the impact of the DAFT suggestions.
Factoring is a very expensive cost of money and generally not a smart thing to do unless you have a true emergency and have exhausted all other alternatives. As Rhonda Bentzen of Bentzen Funding Solutions and I exposed on our respective blogs, a woman who wanted only $4,000 was solicited to sell $50,000 worth of payments by JG Wentworth for about $22,000!
From a best practices standpoint, factoring companies that want a good reputation should refrain from the misguiding sales hype they learned when they first started in the cash flow business and start being realistic.