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Should You Cash in on Your Structured Settlement?



Structured Settlement

A structured settlement is designed to offer long-term financial resources. However, if your situation changes, selling the payments may be a smart move.

The question is, when does it make sense to do this? Keep reading to learn more about structured settlements, what they offer, and what potential benefits cashing them in may offer.

Top Reasons to Consider Cashing in Your Structured Settlement

A structured settlement is a smart option in personal injury lawsuits. These are tax-free and guarantee you a set income for a certain amount of time.

However, when you agree to a structured settlement agreement, it is considered final. They don’t allow you to change anything if your situation changes.

This is why you may decide to sell part of all the agreements for cash. Some of the reasons that make sense to do this are listed below.

Pay Off High-Interest Debt

Do you have a lot of high-interest debt? If so, you know this can impact your credit rating and make it virtually impossible to make future purchases.

Education Funding

Both trade school and college can be expensive. Usually, people cover the cost by taking out student loans. You can avoid this by cashing out your structured settlement.

Home Repairs

Your home requires a lot of maintenance and upkeep if you want to ensure it continues to grow in value. Upgrading appliances, remodeling, and replacing the roof can cost thousands of dollars – or more.

By cashing in your structured settlement, you can make the needed upgrades without having to touch the equity in your home.

Purchasing a Home

There are home-buying programs that require no down payment. However, qualifying for these is difficult.

If you want to buy a home but don’t have adequate down payment, you can use the cash from your structured settlement to purchase the home you want for your family.

Read Also: How to Create Strong Long Term Financial Goals

Starting a Business

While a business can provide significant profits over time, a new business requires quite a bit of startup capital. Many banks will be unwilling to give out business loans to a first-time business owner, which means it is up to you to find other capital sources.


Investing in stocks or a business can provide high dividends. However, it would help if you had the capital for this investment.

Paying Your Taxes

Do you owe back property taxes, income taxes, or business taxes? If so, non-payment can result in garnishments, liens, or bad credit. Use the cash you receive from your structured settlement to pay these costs.

Are You Ready to Sell Your Structured Settlement?

As you can see from the information here, there are several situations where selling your structured settlement will make sense. Keep this in mind to determine if this is something you want to do.

Read Also: Is a Merchant Cash Advance Right for Your Business?

If you are searching for more financial help, information, or resources, be sure to check out some of our other blogs. You will find all the information you are looking for – and more.

James Smith is the writer for Munchkin Press. He is a young American writer from California and is currently traveling around the world. He has a passion for helping people and motivates others.

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