Selling your annuity or structured settlement is one good solution for anyone who is struggling to get out of debt. If you already own a structured settlement annuity or lottery annuity, selling an annuity settlement can be an easy and simple solution to get the cash that you already technically own (but can’t access). Selling your annuity is a fairly simple process and when you work with a legitimate settlement purchasing service, it’s a very safe and secure process as well.
For some people, annuities are good financial assets and are even sometimes helpful for planning out retirement. But for many people, annuities just aren’t reasonable financial investments. In fact, they aren’t really investments at all. When you win the lottery, the federal government withholds 25% of the winnings for taxes (and the state takes out even more). When you have an annuity for a long period of time, you actually end up losing money. That’s because you pay processing and management fees, and because the value of the money decreases as inflation rises. Withdrawing your annuity funds early can be a poor choice if you have a lot of money invested in the account. Withdrawal penalization fees can be as high as 10%.
When you’re already dealing with debt, this can be incredibly frustrating — especially if you’ve decided that the best way to use your money is to pay off your debts. Around 20% of all Americans in their early 20s state that their financial stability is nonexistent; 26% of Americans admit to not paying their bills on time; and only one-third of credit card owners in the U.S. actually pay their credit card bills in full each month.
One of the biggest underlying problems is that there’s a huge stigma surrounding the issue of debt in general, and especially credit card debt. Seven out of 10 Americans state that this stigma is overwhelming, making it hard for individuals to get help. When you know you have the money tied up in an annuity fund, it’s beyond frustrating when you can’t actually access that money and fix your financial problems yourself.
Selling your annuity is sometimes the one choice that makes the most sense. Regardless of whether it’s the best choice for others, if it’s the best choice for you and for your financial situation, then it’s worth finding out more information.