Annuities V.S. Debt: What You Don't Know About Selling Your Annuity
Considering the fact that selling an annuity settlement can cost surrender charges of up to 10%, the whole idea of selling your annuity may not seem all that bright. However, selling fixed annuities can actually be a pretty savvy financial move. If it weren’t, then why would 92% of claimants who sell their annuities say that they’re satisfied with their decision?
An annuity is usually given to help a person cover expenses, such as medical bills following an accident, but what good are smaller, monthly payments to a person after they’ve recovered and gotten behind on their bills? Sure, you might lose a little bit in the sale, but selling your annuity can be a wise move in today’s troubled economic times. Consider some of the follow debt statistics.
Credit Card Debt– The average U.S. household has a credit card debt of about $15,355 if you can believe it, which shouldn’t come as any surprise. After all, a study from February found that 57% of American households don’t consider themselves ready for a financial setback, and 55% say they break even or spend more than they make each month.
Mortgage Debt– The average U.S. household owes about $165,892 in mortgage debt. That is no joke. No wonder why 96% of all Americans claim to be financially dependent on the government, family, or charity at retirement or why nearly one in every 100 households in the United States claims bankruptcy.
Student Loan Debt – If you don’t know that a large part of the nation is drowning in student loan debt, then you may be living under a rock. The average U.S. household owes about $47,712 in student loan debt. This problem is more rampant than you might think. Research shows that 66% of graduates from public colleges have student loan debt; 75% of graduates from private nonprofit colleges have student loans; and a staggering 88% of graduates from for-profit colleges had student loans.
More than 37,000 Americans use structured settlement money every year for a good reason. If you have any questions about selling an annuity, feel free to share in the comments.