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Released: Staggering Structured Settlement Industry Statistics
Structured settlements are a blessing to thousands of people in this poor economy. The one thing that he or she knows that they can count on is that structured settlement that they won 12 years ago. Structured settlement industry statistics, when it comes to the loans sector, tend to rise sharply during economic downturns. This shouldn’t be a surprise, because when the economy is slowed down, people lose their jobs, and everything else snowballs into bigger problems. They then see their structured settlement as a godsend, and oftentimes they “cash in” on their settlement using a legitimate lending company.
Of course, as with any loan, there are some drawbacks. If you look back on the structured settlement industry statistics, you will see that some lending companies take advantage of their customers by charging amazingly high interest rates. Make sure to complete your due diligence on the lender when agreeing to a structured settlement loan.
There is really only one “drawback”, or “con”, to getting a structured settlement loan, which is the fact that you’re going to have to give some of your profits to the lender. Obviously lenders are in the business to make money, so they are not going to give large sums of money up-front without charging some type of fee or percentage.
The most common reasons for someone “selling” their structured settlement are:
- Debt – Paying off current and past debt often makes more sense than waiting 30 years for your money. After paying off the debt, you may then be free to make other investments, or purchase a home, car, etc.
- Medical Bills – It is not surprising that one of the most common reasons for selling is unexpected medical bills. Expect the unexpected, because it always seems to pop-up at the worst times.
- Continuing Education – A large percentage decide to go back to school and have to way to obtain financing. Whether their credit is good or bad, they have the option to sell their settlement and have plenty of money to afford that next year of schooling.
In a recent AIG survey, 65% of the people said that they would rather have a lump sum payment instead of structured payments. With structured settlement industry statistics like these, it’s no wonder that this business is thriving in a down economy. If you are in desperate need of cash and you are willing to pay the fee to the lender, then it’s a win-win situation! You win because you get the money that you need to get out of debt or to pay off a loan shark, and the lender wins because he makes his fee for lending you the money.
However, statistics also show that some people are getting ripped-off by some of the unscrupulous lenders. Getting that lump sum could be a godsend, but if you don’t do the proper due diligence before signing any contracts, then you may just be getting in bed with the enemy…or a bad lender. Educate yourself on any firm that you may deal with, and then you can make well informed decisions. Don’t become one of the negative structured settlement industry statistics!