When interest rates are low, the payments from a structured settlement may not keep up with inflation. This means that the purchasing power of those payments decreases over time. Additionally, some individuals may have unexpected expenses or a change in their financial situation that makes it difficult to meet their current financial needs.
However, with interest rates on the rise, selling your structured settlement can be a smart financial move. By selling your structured settlement, you can receive a lump sum of cash that can be used to pay off debt, cover medical expenses, or make other necessary purchases.
With higher interest rates, the lump sum payment you receive from selling your structured settlement will likely be larger than it would be in a low interest rate environment. This means you can receive more money upfront and potentially invest it in a higher yielding investment, such as stocks or real estate, to grow your wealth over time.
Selling your structured settlement can also provide greater financial flexibility. Rather than being tied to a fixed payment schedule, you can use the lump sum payment to invest in your education, start a business, or make other investments that can help you achieve your financial goals.
Of course, there are some potential downsides to selling your structured settlement as well. You may receive less money overall than if you had kept the structured settlement and received payments over time.
If you are considering selling your structured settlement, it is important to do your research and work with a trusted company that can help you navigate the process.
With interest rates on the rise, selling your structured settlement can be a smart financial move that provides greater financial flexibility and potential for growth. However, it is important to carefully weigh the pros and cons before making a decision.