Structured Settlement loans can be obtained from all the states now with incredible benefits. Mostly, structured settlements are taken by people to receive compensation from companies or individuals after a certain lawsuit have been filed. Such compensation is paid over a period of set time and in equal installments. These installments are mostly paid as a form of insurance agreement that can also be used as collateral while applying for certain type of loans. If you want to apply for this loan, the process is extremely easy where you just need to consider few factors before going for it.
Prerequisites
Whenever you are applying for a loan, make sure what kind of structured settlement you currently have as different settlements can be applicable only for certain types of loan. You have to make sure that the agreement that you have signed on the structured settlement deal states this settlement as a part of your collateral security that can be shown to the banks for the loan. Either way, permission from the court is still needed and therefore, if there is an agreement or not, direct permission from the court can get you easy green signal to go ahead with whatever you want to do with the money. Once you are done with all the legal formalities that can be taken care of through the help of a professional lawyer, you are ready to go for applying for the loan.
Application
When you apply for the loan, the financial company or the bank will analyze and scrutinize your documents carefully before deciding whether to grant you the loan or not. Such process can take a long time, as long as three to four months where you may have to wait further one or two months to receive the loan money once all the formalities are being taken care of. If you want fast cash, selling the annuity can help you generate some money. You might have to pay a certain amount as fee once the loan has been granted. The amount and the other processes may vary from states to states depending on what the local jurisdiction prefers.
Comparison
If you are taking loan, this would mean you need cash for something. Now whenever you take loan, there are good amount of money involved which you need to pay back as installments. You can use the structured settlement money to pay for the loan but in this case, the money you receive from the settlement annuity may not be of any use to meet other expanses. Therefore, selling off the structured settlement for a lump sum value might be a good idea if you need financial assistance at the moment. However, this would depend on the reason behind your current cash needs and if you do a proper calculation on what benefits you the most, then take the decision accordingly.
If you realize that even if you take the loan, you are still at a good position for a surplus cash flow to support your daily needs, then go for applying for the loan. However, if you find out that the loans may get you involved in much more unnecessary expanses, other ideas with your structured settlement deals may help you. Just take your time to decide.
