Structured Settlement Loan

What Is a Structured Settlement Loan?

Do you receive payments every month as part of a structured settlement? Are you anticipating monthly payments because an insurance company or other company or individual has reached a settlement with you or your lawyer? Often, people who receive monthly payments from a settlement need cash right now to deal with an emergency or take advantage of a special opportunity. There are many companies in Ehrhardt SC that will extend a structured settlement loan to people in that situation.

How a Structured Settlement Loan Works

When you take out a structured settlement loan, the loan company will advance you a loan for the amount of money you need right now. In return, you make an agreement that all or part of your monthly settlement payments will be paid to the loan company for a specified number of months. That's all there is to it.

Why Take Out a Structured Settlement Loan?

There are many reasons that people might want to take out a structured settlement loan rather than wait and save the money from the settlement payments. One common reason that settlement recipients choose a structured settlement loan is that they need cash for immediate, emergency expenses. They may be facing foreclosure because of a job loss or illness, or may have to pay for unexpected medical expenses.

On a brighter note, some people decide to take out a structured settlement loan to take advantage of an opportunity. They may have a chance to open their own business or expand a current one. They may want to buy a home and need a down payment, or need the money to relocate to a new job. Whatever the reason, a structured settlement loan allows them to take advantage of their settlement money in advance of the regular monthly payments.

What You Should Know about a Structured Settlement Loan

Some states have specific laws regarding acceptable reasons for taking out a structured settlement loan, so be sure to check the laws in [statetitle] to find out which laws apply in your case. You can learn more about how structured settlement loans work and how they can help you in your situation.