Looking to buy a new car or trim the fat on your student loans? Consider calculating a structured settlement. With debt stressing out Americans all across the country and monthly expenses always demanding attention, finding smart and easy ways of organizing a secure financial future is essential. While some choose to manage their debt themselves, others choose more reliable methods that ensure they won’t fall into bad habits along the way. Buying an annuity with a lump sum or lottery annuity is one of the best ways of reducing debt and worry alike. Let’s take a look at the most frustrating forms of debt and what to do when you win the lottery.
Common Forms Of Debt
So, what are the most common forms of debt? For Millennials it’s medical debt, student loans, credit card debt and car payments. The average consumer has nearly four credit cards and nearly one in five Americans between the ages of 18-24 state themselves as being in debt hardship. Consumers frequently under report how much debt they have, with lender-reported credit card debt revealing a sum nearly 160% greater than borrower-reported balances. If you’re not sure what to do when you win the lottery or whether or not to sell your lotto win for a lump sum, read on!
When you have a family, or are looking to start one, putting a dent in household income is often at the forefront of your mind. Although general family income has grown by nearly 27% in recent years, so has the cost of living. Nowadays the average household will carry over $15,000 in credit card debt and nearly $130,000 in general debt. Even interest sees many families struggling, with $6,600 the reported average interest. When 26% of Americans are unable to pay their bills on time, what are some of the best options for helping you out when you’re in a bind?
What is an annuity settlement? Also known as a structured settlement, these are used to provide you with a yearly payout to better help you trim your debt and manage your finances. The average structured settlement payout is nearly $325,000 and well over $6 million is paid every year to fund new structured settlements. More than 37,000 Americans use their structured settlement money yearly and over 90% of claimants were satisfied selling their structured settlement. With an immediate annuity you can start receiving payments within 30 days.
If you’re wondering what to do when you win the lottery, you’ve come to the right place. Although gambling is a very popular past-time in America, many aren’t sure what to do with their money once they get lucky. Some lose their money in a matter of months and, in worse case scenarios, end up in debt all over again. Remember that the lottery will withhold 25% for federal tax, with another 6% to 9% of state taxes depending on where you live and your personal tax bracket. The Powerball annuity payout, for example, can offer you 30 payments over a period of time.
The Right Option For You
Reducing debt is important for a variety of reasons. It puts a dent in your daily stress, which can take a real toll on your physical and mental health over time. It improves your credit score, which is essential if you want to apply for loans or rent services. Lastly, that new car or house you’ve always wanted becomes a reality rather than a distant dream. Now that you’re caught up on structured settlements and what to do if you win the lottery, consider speaking with your local credit lender and asking them about annuity options.