It is always a very good idea to know the reasons behind the encashment of your structured settlements. The reasons can be many and majority of the people receive structured settlement payment as a result of a lawsuit. However, there are people who want to assert their rights to expedite their money inflows as per their needs or requirements. Some reasons have been put together so that you can get an idea of the whole encashment procedure.
Be in control
Ideally, encashment of your structured settlements are usually a result of needing money in emergency situations. In such situations, people simply cannot wait to have payments in small chunks which are distributed over a period of months. They need big money and that too instantly. This is one of the major reasons behind the encashment of structured settlements.
Giving your child proper education is something you dream of. Therefore, in order to do that you would need a large amount of money which you would need to pay in a very short span of time. You can’t afford to wait to have the small chunks which are distributed over a period of months. Encashing your settlements might be a good idea so that you can have the money in lump sum.
The biggest challenge which people face in investing in real estate is the down payment factor. Since it involves a lot of money people often resort to encashment of structured settlements so that they can cover up the down payment easily.
Holding on to your property
At times, things can get a bit tricky in holding on to your property, so you would need a lot of money to provide you with the right kind of financial security in times of adversity.
Paying your Medical Bills
Large medical bills can be a real pain especially when you are sick. Therefore, selling or encashing your settlements can be a good idea in such situations since you don’t have to worry too much about getting the right kind of treatment for yourself.
There is always a major maintenance overhead involved in your house or car. In order to do so, you would need a lot of money; therefore encashment of settlements can be a fruitful proposition. This will help you to carry out the maintenance process with utmost ease.
Job loss is something which is always unexpected especially when you belong to an era of economic slowdown. You never know when your job is at stake. Therefore, having your structured settlements encashed is a wise idea when you are unemployed. It will give you that fuel which you are badly looking for in order to sustain yourself in such a situation.
Hence, encashment of structured settlements can be good or bad depending on the situation however if you can know your situation well, then you can greatly benefit from this process. The above steps will help you to figure out when to encash and when not to.