RSSPeachtree Settlement Funding
Peachtree Settlement Funding is one of the most popular consumer options in the structured settlement and annuity exchange industry. However, what most consumers don’t know is that they can frequently get much better rates and terms using less-known – yet still highly reputable – competitors.
The way Peachtree Settlement Funding works is that, much like the lottery lump sum option, they offer you a lump sum that is significantly less than the total of your monthly payments. Here’s why.
A portion of the money you are getting from your structured settlement in the future is interest that hasn’t been earned yet. The insurance company is simply paying you the interest on the money they invested when you settled your case. The ‘amount’ of the structured settlement (ie. the sum of all the future payments) includes a great deal of interest that hasn’t been earned yet.
Now, the amount of money owed to you in the future is not worth as much as it would be today. This is due to inflation. Inflation simply means that things will cost more in the future than they do today. Remember when your grandmother told you that movies used to cost a quarter? Now it costs $9 to go see a first run flick. This is the power of inflation. So, while it appears that your settlement is being cut in half, the cut isn’t nearly as drastic since the value of your settlement will actually decrease over time.
With that being said, does it make sense to receive your money up front, in a lump sum, or to continue to receive monthly payments. The answer is, it depends. If you are struggling financially because of loss of income, mounting medical bills, or are behind in your current obligations, by all means it makes perfect sense to cash out and catch up. But, on the other hand, it is also nice to receive regular monthly or annual payments and be assured an income for the next ten or twenty years and not have to worry about losing a job to the economy or losing your house because you can’t meet the mortgage payment. The money will generally last longer if you don’t have access to it all up front.
So, if you decide that it makes sense to exchange your monthly structured settlement or annuity payments for a lump sum, make sure that you choose to do it with a reputable company that pays well. Again, many of the lesser-known options pay better than big names like Peachtree and JG Wentworth. Either way, make sure you receive the fairest deal and forfeit the least amount of money possible in the exchange.
For more information or a free quote for a lump sum cash payment on your structured settlement, contact Professional Settlement Buyers
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Tags: Funding, Peachtree, Settlement