Many people who are fortunate enough to win the lottery feel that they would rather have annual payments. They see the annual payments as a nice and safe way to receive their money. However, the annual payments might not be the best option. Dealing with debts, large debts in particular, is one of the primary reasons many people wish they had chosen the lump sum payment instead.
Do You Have Large Debts?
If you have large debts you want to pay down, and you choose an annual payment, there is a chance you will not have enough money to pay down the entire debt with the payment. Instead, you will pay part of it, and it will continue to accrue interest. This means you are paying more for these debts by the time you finally finish paying them. The interest on the debts you have could be greater than the amount you pay to convert those annual payments to a lump sum payment.
This means you could actually save money by selling those annual payments and paying off all of your debt at once. It can also relieve you of the headache of those monthly bills.
Changing Your Life
When you win the lottery, you might feel as though it will change your life for the better. This might often be the case, but when you have annual payments, they can seem rather small after all of the taxes. It might not feel like the change you had anticipated. You might not be able to afford the car you want or the house you want. Consider also the ravages of inflation. If the inflation rises, the value of your lottery payments will diminish. Even though you will receive the same amount of money, it will not be able to buy as much. This is a dismal thought, but it can happen.
Instead, it might be a better option to sell those annual payments for a lump sum payment. Companies today are willing to buy those payments and provide you with the lump sum that really could make a difference in your life and let you better the way you are living right now. This is exactly what most people want.
Should You Sell?
If you prefer the annual payments and you do not see any immediate need for the larger sum of money, then you might be fine with the way things are right now. However, most of those reading this want to have the larger sum. They need to pay debt, or they need to pay for college for their children. Any number of elements of life could crop up and create a need for a large sum of money right away.
Fortunately, it is possible to sell those payments today, but you need to make sure you are working with a reputable and high quality company. Working with a good company makes all the difference, including in the amount of money you get. All of the companies need to charge a fee for their services, and they need to make some money on the deal. You just need to choose a company that can offer you the best possible deals and the ones that can get you the money you need quickly. Working with a good third party company, rather than the lottery officials, can often offer a better deal.
Many of the companies providing this type of service today are able to offer quotes so you can see what type of deal you will receive compared with other companies. If you need your lump sum payment, start looking for a company today.