When it comes to structured settlements we get a lot of people who have them, are getting monthly checks and still have bad credit. The whole ‘I need money now and have bad credit’ issue comes to us all the time. Primarily because people over spend on luxury items and treat their settlement income as though it is never ending.

Lets get this right out of the way, if you have a structured settlement and you want to convert it into a lump sum quickly in order to free up your cash situation you are going to get screwed. There is no such thing as a fast and good conversion, they are slow and good or fast and dirty. Take the time to get the most value for your settlement.

For the rest of you who see yourself in need of cash now but have bad credit then there are some options available. However, we only recommend them if your need is severe. If you have a medical bill, you need to pay your rent or you’ll get evicted, things like that.

Pay Day Loan Centers – These guys specialize in giving you an advance on your paycheck in exchange for ASTRONOMICAL interest rates, sometimes 600% per year. The % rates are so high because they assume they will only have your money for a few days or weeks at most. The high interest rates are the only way they can make money.

Title Loan Centers – These are business locations that will give you money in exchange for the title on your car. Now this only works if you actually have the title to your car, meaning you own it out right and are not paying a bank for it. Again the interest rates here are super high because you should be paying the loan back fairly quickly.

Just Ask Your Employer – Ask your employer for a cash advance on your paycheck. If you have already done this a lot – you may be out of luck. But most employers, if they like you, will let you get an advance at least once if you explain the situation to them.

There are a few things you need to know before you go after a settlement loan.  First of all you will be charged an insane interest rate, somewhere north of 20 or 30%.  This means if the value of the settlement is $100,000 and you take a loan for $50,000 you will be losing over $1,000 per month just in interest – more if the settlement amount is higher.  So if you are looking for a settlement loan you need to have some really good reasons, and wanting money for the sake of money should not be one.  Medical bills, loss of wages, house payments and debt are the only real reasons you should consider a loan and only if the penalty interest for those bills is higher than the interest charged on the loan, otherwise you are still losing money.  But if you are filing workers compensation settlement claims then you may be in for a long haul requiring the money now to help you pay bills.

Its easy to be misguided here because the money can seem so far away and because you didn’t earn it through labor it is easy to spend it on things you may not really need.  A settlement advance is meant to help you get through the trail, if you need it, not as a down payment on a new ride.  The structured settlement payments are designed to give you restitution for the accident or claim.  If you spend the money now, or lose money on the interest from the loan you are cutting yourself short in the long run which is why it is great to have a certified structured settlement consultant helping you make the most of your settlement.

Consider things like inflation, the cost of goods rising, consider that on average the wages being paid to Americans is not meeting the cost of inflation meaning we are making the same amount, yet the cost to live is increasing.  You may not realize at this moment what future financial burdens may arise as a result of the settlement.  If you develop a more serious ailment as a result of undiagnosed injuries your structured settlement loans may have robbed you of the money needed to cover the injury.

These future payments are arranged to pay out in whatever way best suits the one receiving them, this person is often called the plaintiff.  For example when my father was awarded a pain and suffering settlement for mal-practice he set the funds up in a structured settlement for my sister and I.  We each received a portion of the annuity on our 18^th, 19^th, 20^th and 21^st birthday – then on our 25^th birthdays we received a final lump sum.  That just happened to be how our father set up the payment schedule.

Among the primary benefits in a structured settlement is the tax advantage it provides as the payouts cannot be taxed in most cases; and can have tax deferments available to the plaintiff that wouldn’t normally be available.  A structured settlement can assist the individual receiving them by preventing funds from being prematurely used.  The settlement actually prevents the one receiving it from themselves by making sure the funds come incrementally.  This is especially true for minors who may be receiving an inheritance.  Because the maturity is not there in many minors the structure allows them to grow and mature within the reception of the funds.  It can be very helpful to have a certified structured settlement consultant helping you make these kinds of decisions.

In some situations a disabled plaintiff may be better served receiving payments over time or in a special needs trust in order to facilitate the purchase of medical expenses that may arise in the future as a result of the injury.  This way one is protected against spending all the money in the first few years only to find out later on that you need follow-up medical care.

Whatever the case may be a structured settlement is designed to disperse a large sum of money over a period of time to a specified individual often times settlement cash structured for flow is used to help pay bills and cover expenses.