by John Darer® CLU ChFC CSSC RSP CLTC
Due to the high cost of money it is generally NOT a good idea to sell your structured settlement payment rights until you have explored and exhausted all other options. If you must go down this route then you should try to accomplish your goal with as little disruption to your long term structured settlement as possible.
There is a huge range in discount rates with a concomitant effect on how much you can raise for sold payments. Remember if you are really stuck and must do this you should only sell as little of your structured settlement payment rights as possible to solve your unexpected financial problem or accomplish your goal.
So how much does that structured settlement cash now offer really cost you?
If you're handy with numbers, check out the FREE structured settlement calculator on the website structuredsettlement.co
Or consult with someone who has a a TValue calculator or similar program. Use TValue to solve for the effective discount rate including all costs that the factoring company is charging. You can then use the number to compare to other sources of capital such as bank borrowing, credit cards, home equity loan, SBA loan etc.