If you have a structured settlement and are planning on taking out a loan, it is important to sit down and speak with a financial advisor on which option would be best for you to go with if you need a large sum of money.
Taking out a loan can be very pricey and you have to pay it back along with high interest rates that can accrue. You also have to apply for a loan and you are never 100% guaranteed that you will be approved. You have to ask yourself if taking out a loan is really putting you in a positive cash flow because of the fact that you do have to pay it back.
When you have a structured settlement you would be selling portions of it or the whole thing, which means you, would not need to pay it back. Also, it is tax-free money. This is great to know if you decide to sell because you get the lump sum tax-free.
These are some tips to think about if you need a large sum of money and your only options are to take out a loan or sell your structured settlement. It always helps to talk to a financial advisor as well to make sure you are making the right decision.
Sell Structured Annuity