Periodic Payments

Written by Michael Federico
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Court settlements, lottery winnings, and inheritances often come in the form of periodic payments. A person receives installments over a pre-determined length of time until everything is paid in full. Periodic payments can come weekly, but most commonly come monthly or annually.

Many people who receive periodic payments see them as both a blessing and a curse. Of course the money they get is beneficial, but often payments are not enough to help them get out of debt, invest, or make major purchases. They feel if they could secure a more substantial amount of the total payment at one time, they could accomplish more with the money.

Selling Periodic Payments

It is difficult to determine whether sacrificing money in the long run to get money in the present is ultimately worth it. However, for those who have very specific financial goals, getting money now might be more important than getting money 15 years from now. People who feel this way can sell their periodic payments for a lump sum that would take only a month or two to arrive.

Before selling periodic payments, it is important for a person to realize that he doesn't have to get rid of everything. He should, if possible, maintain the majority of his future payments, selling only what is absolutely necessary. Researching different firms that purchase periodic payments allows a seller to get a number of different quotes, because companies do not all offer the same rates. If a person finds a deal that works for him, he can make the sale. However, to protect the parties involved, a court order must often be obtained for the sale to go through. Despite most people's beliefs about the court system, sale approval is generally not a long, drawn out process.


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