Lottery Loans

Written by Michael Federico
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It is safe to say that a large number of Americans have taken the time to imagine what they would do if they won the lottery. Usually in these visions, homes and cars are bought, debts are paid off, kids are sent to college, jobs are quit, and vacations are taken. People imagine winning the lottery will allow them to basically do everything they have always wanted.

This is often the case. However, many lottery winners receive a structured settlement. This means they receive scheduled payments over a predetermined period of time. They may have won millions of dollars, but they receive several thousand dollars each year over the course of 40 years. There comes a time for many of these winners when they need more of their winnings then they are receiving through these payments.

Securing Lottery Loans

There are companies that will lend money based on a person's future lottery winnings. Many times these loans differ from regular loans, because a person repays them by redirecting payments to the company. Most companies will allow a person to sell any number of future settlements. However, each company offers a different rate, so it is important to look at a number of options before deciding to sell.

People in the industry (at least those who are concerned with the sellers they work with) encourage people to keep as many of their future payments as possible. They suggest that a person should figure out exactly how much money he needs in the present and only sell what will get him that amount. They also suggest that finding a deal that will not cost any out of pocket money (i.e. initial costs for quotes or services) is the best way to go.

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