by John Darer® CLU ChFC MSSC RSP CLTC
Instead of selling your structured settlement payment rights to pay off debts, you could just try to make payments on the debt and keep the structured settlement payments. Wallet Pop carries a story of a woman who was able to pay off $46,000 in debt in 4 years the old fashioned way, through discipline. It's an interesting story which takes you through her journey from being part of a married couple living beyond their means, the divorce, to indulgences and easy credit to an epiphany.
Am interesting side note. I am proud to have recently talked a wannabe selling annuitant "off the ledge". That annuitant initially called me angry that she was selling her annuity for less than was initially placed into it when the structure was set up. I showed her how her anger was misplaced. I explained to her that the total amount of payments to be made from the structured is exactly as was contracted for. Her perceived loss was simply the result of the predicament she was in and the result of the proposed sale. In fact, if she sold the payment rights to a buyer, I told her that the payments would be paid as scheduled, but instead of to her, they would be made to the buyer. This is the reality of an annuity that is sold within the early years after establishing the structured settlement. It is why I am so dead set against what I refer to as "wet ink" structured settlement factoring transactions.