One of the most frightening experiences anyone can endure is a financial hardship–yet it can happen to anyone, at any time. The objective is to be prepared and have a back up plan in the event you face a financial hardship. Your structured settlement may even come in handy during a stressful time such as this. Here, we share tips on what to do and how to handle any obstacles you may face.
Ask for a payment plan
Most people don’t have thousands of dollars on hand to spend at the drop of a dime. If they did, there would probably be a lot less credit card debt. There is the famous saying that every thousand mile journey begins with the first step. If you owe a company thousands of dollars, ask about any payment plan options. Many companies just want to recoup their losses, and they understand that if their clients had the money, they would have made payments.
With a payment plan, what you owe won’t seem as overwhelming and insurmountable. See if you have some money to make a down payment in good faith. This will show your creditor that you are serious about paying off your debts. If you do get a payment plan, do everything you can to honor it. If you default, you may not get another chance and your credit will suffer a serious blow.
Ask for a lower monthly payment plan
Financial hardships can occur through the loss of a job or an illness. You can’t predict either. As a result, if you already have a payment plan going but your income has decreased, ask if you can lower it through a debt consolidation loan or something similar. This means you can still pay down your debt without having to drastically change your lifestyle. There isn’t any question that your debt should be a priority, but it won’t do you any good if you starve in the process of making payments. In addition, you’ll feel better that you’re still able to make payments.
Consider selling your structured settlement
This is where your structured settlement may help. Sometimes you just need a lump sum on hand to take care of things. This is especially true if you worry your debt may accrue to a higher interest rate. When you get cash for your structured settlement, you can save on interest payments over time. It may also help your psychological health by getting you out of debt.
In fact, there are many people who sell structured settlements for cash. There are many college students who also work full or part time. Education is a way of getting them ahead in life, but it doesn’t work if they have hospital bills and more. By selling structured settlement payments for cash, you can get a lump sum payment to pay of any debt. That way, you have greater peace of mind. The last thing you want is to give up on your hopes and aspirations because you have run out of money.
Although, when it comes to selling structured settlements, this is a personal choice. It really needs to be based upon your current and future financial goals and immediate needs. Increasingly, people are choosing to sell structured settlements for a lump sum now to help with unanticipated expenses, medical costs and high interest debt. Once you receive your lump sum, you can use it any way you like whether you reinvest it or take a dream vacation. You want to have a full understanding of how much your future payments are worth. Inflation and a higher cost of living decreases the value of your payments.
Manage your budget
You might want to look into apps that can organize and track all of your finances in a single location. There are several that will send you reminders for due dates, track credit card rewards and monitor your credit card use. All you have to do is enter your accounts, and you can even pay bills using your mobile device.
Sell your lottery payments
If you’ve won the lottery and are receiving lottery annuity payments, you might want to sell the payments for a lump sum. You first want to get the help of a reputable company. You only want top dollar. In addition, you will need some sound financial advice. You might even sell only some of your payments and keep the rest. With a trusted structured settlement company, you can find out exactly how much your payments are worth and whether or not you should sell them.
Experiencing a financial hardship is difficult enough as it is. The goal is to make an informed decision, one based on logic and not fleeting emotions. You may feel like throwing in the towel at life, but you have to remember you have options. You just need to clear your head and do the necessary research. Always keep in mind your future goals, and speak with a trusted advisor.