Snowball? Avalanche? or Neither? Which is the Best Debt Payoff Strategy For YOU? Maybe Neither!

There are many ”expert” methods out there to help you tackle you debt. The two biggies being the ”Snowball” and ”Avalanche” methods but there are other, unique, methods too. We listen to other people all too often not looking at our own situation and analyzing it. Experts try and tell us that their method is the best and we listen to them. We, as a society, don’t question things enough.

Snowball Debt Repayment

This method, probably made most famous by Dave Ramsey, suggests organizing your debt payoff in such a way that you pay them off according to size from smallest amount to largest. The logic being we gain debt payoff momentum and are more encouraged to continue on in our efforts when we see results and gain the satisfaction of paying things off. The big drawback to this method being you could likely end up paying more in interest since interest rate isn’t taken into consideration when prioritizing.

If you’re the type of person who gets excited about paying something off in full (rather than just paying a balance down) this method will likely work well for you.

Avalanche Debt Repayment

Interest rate is taken into consideration with the repayment option. Organizing your debt from highest interest rate to lowest and start repayment accordingly. This method ensures you’re debt free and paying while paying the least amount of interest.

To me this method makes the most sense. While I understand the logic behind momentum gained with the snowball method, if you were to calculate potential interest paid between the two one may be inclined to switch methods.

Which is Best For Me?

Neither.

Snowball doesn’t work for me because I lose thousands in interest and I like the idea of paying as little as possible, as fast as possible.

Avalanche doesn’t work for me because my highest interest rate loan offers me a tax discount come April and my lowest interest rate loan is effecting my credit score so I want it eliminated ASAP.

Every debt repayment strategy needs to be personal and while both of these methods make sense in their own ways I need to look at my situation and realize that neither is exactly appropriate and guess what experts? I’m Ok with that. I’m Ok with not listening to your ”expertise” and I’m Ok with doing what is best for my family’s fiances. You should be Ok with challenging experts too.

We tend to get lost in hype over stuff. Again I will reiterate that both of these methods are good and the main goal of debt freedom is priority but it’s important that we don’t forget that they’re not the only ways though. If something someone else is doing doesn’t work for you, don’t do it, it’s just that simple. I’m going against the grain. I’m currently working on paying off one of the loans that offers me an income tax deduction because it’s like a thorn in my side and I want it gone. Then I will likely shift my financial efforts over to the 0% interest loan because it pisses me off. I don’t care that it’s 0% and I have 5.5% interest loans as well.

I’m paying off our debts according to how much the annoy me, not what the experts say. How are you working on your goals? Any other rebels out there?

Having a Kid While in Debt

I am of the opinion that there is no perfect time to have kids. There will always be something on your list. A trip. A renovation. Sleeping past 6:30am. Even people who are in financially ideal situations for kids, will have some reason why they may not be ready.

We haven’t always been the most responsible with our money. Not that we were irresponsible,  but we certainly didn’t have a clear picture where our money was going once all the bills were paid. We did what we we thought we were supposed to do. Get educated. Get job. Get married. Get house. I knew one thing though, our debt was big enough that I didn’t know how we would ever have kids. At least have them before we’re 40 (not that there is anything wrong with having children into your 40′s, just not for us). There was simply NO way we could have kids before 35 without debt. We made the decision to just go for it, debt be damned, we’d make it work.

We all hear stories about couples wanting children and it just not working out for them for whatever reason. I didn’t know how easy or difficult it may be to have a child so we simply decided one day to stop ”not, not, trying”.ultrasound

Apparently we’re fertile. The goalie was pulled in August, I was pregnant three weeks later. I certainly didn’t think it would be that easy. Now I was really freaking out. My goal with deciding we’d get serious about having a family was to finally spend a few months getting our finances in order. With the gestational period as well I thought for sure I would have oh, 1-1.5 years to get our ducks in a row before a kid came. Not nine freaking months! Apparently that’s the gamble you take…

I live my life believing everything happens for a reason. I have to in order to keep me sane. I’ve said it before but getting pregnant, having a difficult(ish) pregnancy (being put off work early as a consequence), and finally having a child, is exactly the fire under our asses that we needed. I really don’t know if we’d be on the track we are if we didn’t have a kid.

People who are in debt often have a thing, or moment, that finally makes them realize something needs to be done and for us, it was having a child.

Having a kid while in debt isn’t easy. Actually it’s significantly harder. While we pay for daycare, without this added cost, we could put the money towards debt. Me staying home to offset daycare costs doesn’t make sense for us. One, I make too much money to not work even with daycare costs and, two, I have no desire to stay home. I love my daughter more than anything in the world but I also love my career. I didn’t go to university for six years to not work. I want both.

My husband and I have to make the decision to put her first. While this is fairly common place with all parent/children relationships when you’re in debt ever single decision is important. She will always get fresh fruits and veggies, clothes, and all needs met before our wants and needs are met, no matter how basic. If we run out of something (like this week I have no salad for my lunches), I’ll deal with it. If she doesn’t have the required fruits and veggies for her meals, we will always find a way to make it work. She needs new shoes more than I need a replacement pair of scrubs for work. You get my drift.

Travel is limited with kids and being in debt. We have big plans for future travel (think desires to attend the Olympics in eight years) but for now, and until the debt is gone, our travel plans are limited. Every two to three years we plan to go to a family reunion, last year it being in Boston, and another one in the works for next year (location TBD). These trips will trump any other travel plans (like FinCon) for now.

I won’t lie, having a child while in debt isn’t easy. She didn’t ask to be born so it’s our responsibility to provide the best life we can. Every decision you make affects you and your financial situation but know what? I still wouldn’t trade it for anything. We’re making the best of it and making it work. Sure I could live in the ”what if’s” (like what if we didn’t buy a house when we did and reallocated our money) but what’s the point. This is our life, debt and all. All we can do is try our hardest to improve it.

My $35 Oil Change Cost Me $850

Ok, so obviously the oil change didn’t  cost $850, it did in fact only cost $35, the problems that the oil change discovered cost us over 800 additional dollars.

Our tires our shot. Our 10 month old Bridgestone tires that I wrote about here. Wicked eh? Needless to say we didn’t have a ”new tire fund” going on since we had just dropped $700 on tires 10 months ago and we thought with rotating with winters we should be able to get three to four years out of them. Since it was advised, and confirmed by other sources, that they should be replaced ASAP for safety reasons they will be placed this week being paid for with our emergency fund. We have a three pay month coming up so we should be able to top our ER fund pretty quickly.

Long story short it’s technically our fault. The tires were placed 10 months ago at a store that only sells tires. They sell, install and balance tires. We weren’t even thinking after they were placed that we would need to go somewhere and have a separate wheel alignment and suspension check. We just paid for the tires and drove on our merry way. We’re not really ”car people” but we’re not idiots either and my husband does know some stuff but this was the first time we’d had tires placed anywhere other than a fully licensed garage where it’s assumed (and executed) that the alignment and suspension would be checked at a time like placing brand new tires.

Want to know what happens when you place new tires on a vehicle whose wheels haven’t been aligned for what is now two years? They wear unevenly, though there was zero driving indication of any problems, half of our tires (outer half) were totally bald down to the smooth rubber. Less than 25,000 km, tires are shot.

The tire that we bought 10 months ago, we have come to learn, is also not an ideal tire for our vehicle, compounding the issue. Wicked. $700 could have been better spent. The people we met this weekend, who performed the oil change and notified us of the problem, went into quite the detail about how the tire we had purchased wasn’t a ”bad tire” but certainly not ideal for the type of vehicle we have and would never suggest anyone buy said tire for our vehicle. It was a new technology ”green tire” which claims to save on fuel economy but only lasts about 50% that of a traditional ”non-green” tire. Also, it’s technology is too new to prove any claims substantially. So though we thought we had done our homework we essentially wasted away $700.

Needless to say we’re pissed. Pissed at ourselves that we didn’t have an alignment done. Pissed that the wrong tire was sold to us initially  and pissed that we need to take so much from our little emergency fund. I’m thankful that we’re now in a position with the emergency fund that allows us to buy the tires without stressing the eff out but still stings to knowingly spend $1,500 on tires within one year.

Has one of your mistakes ever cost you money?

Best Ways to Save Money on Health Care Expenses

From monthly premiums, co-pays, prescription drugs to doctor’s visits – the amount of money needed for health care every year can be overwhelming. Fortunately, it is possible to save, while still getting the best medical treatment. Here are some of the best ways to save money on health care expenses.

Choose In-network Providers

In-network providers are doctors, pharmacies and other care providers who have arrangements with health insurance companies to help control medical costs. It pays to use providers within the network of one’s health plan because of the low-cost of care involved.  Visit sites like Healthcare.org to find the plan that fits your medical needs and stays within budget.

Be sure to check the website of your insurance company to find a list of providers who are within its network. It really helps to avoid paying unexpected expenses associated with visiting out-of-network providers.

Consider a High-Deductible (HD) Plan

A high-deductible plan involves paying a high amount of out-of-pocket expenses before insurance kicks in. For people used to paying $20 office co-pays, switching to a high-deductible might seem counterproductive, especially when trying to save money. However, it can actually help save hundreds of dollars per month because of the lower monthly premiums. For healthy families who don’t visit the doctor regularly, this option is worth considering, as it can help save some money in the end.

Most HD plans allows people to open health savings accounts, where they can save (pre-tax) money to pay for insurance premiums, as well as out-of-pocket medical expenses. Any unused money on the savings account continues to grow year after year.

Ask for Generic Prescriptions

Generic drugs are not only FDA-approved and safe, but also contain similar active ingredients as the doctor’s prescription. They are a good way to save money because they are less expensive and work the same way. Therefore, always ask your doctor if there is a generic alternative to what you’ve been suggested.

Get the Recommended Preventive Care

Regularly going for the recommended medical exams, immunizations and screenings, can help detect a problem in its early stages, making it easier to treat. In the long run, this can help save hundreds of dollars that would otherwise be used in treating serious conditions that were not detected early.

Stay Healthy

Maintaining a healthy lifestyle helps to stay out of the doctor’s office, thus lowering health care costs. Eating healthy foods in the right proportions, getting enough sleep, quitting smoking and regular exercise, are just some of the ways to stay healthy. For those who find it hard to hit the gym regularly, walking is an easier alternative. Make it a habit to go out daily for a quick stroll and use a pedometer to track your progress; preventative measures are the best way to shave dollars off of your health expenses.

Compare the Prices of Lab Tests and Prescription Drugs

Before visiting that doctor-recommended laboratory or pharmacy, consider visiting a couple of other medical facilities to compare their prices. Because different facilities charge differently for their services across the country, it is possible to get prescription drugs or lab tests done at a lower price.

Shop Around for the Best Price

Though we shop around for the best price when it comes to our clothes and food, we often forget to do this when it comes to health-related products like vitamins, medical alert services, topical creams and more. Just because you have a written prescription doesn’t have can’t take order items online. For example, Replacemycontacts.com sells discount contact lenses, enabling you to choose between more than merely the offered price of your closest pharmacy.

Check the Medical Bill Before Writing a Check

According to the Medical Billing Advocates of America, about eight out of ten medical bills have errors. It is therefore in your best interest to take time, and check the medical bill thoroughly to ensure that everything is in order before paying.

If there is anything that is not clear, contact the hospital’s billing department for further clarification. Doing this will help save money that would otherwise be wasted in paying for unknown charges.

 Follow to the Doctor’s Orders

Research shows that 20 percent of patients don’t buy prescriptions they get from doctors, while another 10 percent don’t take their medications correctly. Failure to follow the doctor’s orders can make one’s condition worse, landing him back in the waiting room. This is yet another medical bill that can easily be avoided by being obedient.

The above simple tips, if implemented, can help to significantly reduce health care expenses.

 

Stop Saying, Start Doing! Tackling My To-Do List

Yesterday you said tomorrowThis is my new moto. I am the queen of procrastination and know what? It stresses me the eff out! I sometimes live as though I have no control over things I really should but don’t make the time to do so. That’s no way to live now is it?

Organization is key to a successful and stress free life, at least for this chick right here. Being organized, from knowing where every single paper in your house is to managing a routine is the only way I will be able to accomplish everything. I’ve made excuses for too long and bumping items further down on my to-do list rather than prioritizing and actually getting them done, it’s ridiculous actually. I’ve become a lot better than I used to be but when someone does something, no matter how improper for so long, and still gets results, it’s hard to change. I still get everything done but the process is never fun or as easy as it should be.

Though I’m at my pre-pregnancy weight I need to start working on those 10-15 lbs that found me before I got pregnant, bad. And I want them gone before my kid’s birthday in precisely three months. Googling exercise routines and not doing them is no good. Dreaming about how I would like to look without putting any effort into it again is doing me no good.

Again with exercise, I need to accept that I will never and no one can make me, enjoy a class like Zumba or anything that requires coordination. I can’t walk and chew gum so doing anything that requires watching and attempting to make myself mimic is setting myself up for failure. I get more frustrated with myself. I do better with independent activities that I can 100% control without anyone telling me how or what to do (type-A?). That being said I’d love a personal trainer to yell at me and me alone everyday and challenge me.

Solution? I need to stop with the excuses, get organized and start waking up before the kid (which probably means 05:45) and getting it done. Run/walk on the treadmill until it warms up outside and get a consistent strength training workout going. Plan hikes with friends (though likely not at 6am). I used to wake between 05:45 and 06:00 when I was in university to go to the gym before class so I know it’s in me, it’s all about routine.

Getting a proper life insurance policy has been on my to-do list for, oh, almost two years. I don’t even know where to being searching for one so I just haven’t done it. I need to look into this more and actually do it. My 42 year old co-worker is currently undergoing radiation treatments for stage four cancer, life is a cruel bitch sometimes and I can’t mess around anymore with a kid.

Solution? Monday call my office and get the number for a patient of mine who I know could point me in the right direction. He’s a financial planner who works with various insurance brokers daily. I trust him and any contacts he’d give me.

We need to set up my husbands pension contributions. Again he’s been entitled to this for over a year and we haven’t followed up with the offer losing out on one years worth of free money (matched contributions by company).

Solution? Get hubby to start with an email to his financials coordinator at work. His company profile is a bit intricate and complicated so this is the starting point for now.

Do you have anything on your ”To-Do” list that isn’t getting accomplished? How do you plan on getting them done?

Long Overdue Blog Love

Deer in our neighborhood this week, a rare siting in the suburbs.

Deer in our neighborhood this week, a rare siting in the suburbs.

It’s been too long since I’ve done a post sharing some blog love. I used to do a weekly post but it just got too overwhelming but every now and then I like to remind people how much I appreciate them in different ways and maybe point out a few new blogs I may have stumbled upon. I read a lot of blogs daily but I can’t always comment (commenting on touch screen phone is annoying and frustrating!)  and while my intentions are to comment when I get home it usually doesn’t happen. Blogger fail. Here are a few posts and bloggers I love and admire daily!

Erika from Newlyweds on a Budget keeps it real and recently wrote about what lifestyle inflation means to her now that they’re debt free. I wrote a similar post about how I plan on partaking in lifestyle inflation when our debt is paid off, so you can say I relate to her.

Holly from Club Thrifty shows us her mad DIY skills in her spiffy kitchen remodel!

Michelle, the queen of making shitloads of side income (though in her case, now full-time job) tells us how to make $1,000 extra per month.

Jordann tells us how she’s going to save $23,000 THIS YEAR!

Jessica wonders if anyone would quit their job to be on a reality TV show, Ummmm  not me.

Harry from PF Pro wrote a guest post for John about balancing a 9-5 job while actively pursuing a side hustle. I loved this post Harry!

These are just a snippet of posts I’ve loved over the last week or so! Have a great weekend!!

Creativity and Personal Finance Bloggers

Taken by yours truly

Taken by yours truly. One creative outlet of mine.

A friend of mine recently linked to this interesting post via Huffington Post on Facebook. I have to be honest I rarely read posted links on Facebook but I was looking to kill time on my lunch break so proceeded to open the link and read it. I’m glad I did because it was quite an interesting article titled ”18 Things Highly Creative People Do”.

I’ve always considered myself fairly creative in certain ways. Other times I marvel at how people come up with certain ideas, assuming it’s something I could never do. As a child I always enjoys art classes, playing with paints and having fun. Into adulthood I still have fun with color schemes, DIY attempts and interior decorating playtime (when money is there to have fun). Though I enjoy blogging as some form of outlet and connectivity, I don’t know that I do it to satisfy my personal creativity bug. I don’t know what exactly it is that makes me enjoy blogging but I certainly don’t equate it to the same creativity I have when I’m making a craft or painting something.

Anyway after reading this post I realized just how ”highly creative” the personal finance blogging community is. To pick a few topics that were highlighted:

1) Daydreamers.

How often do we read or write a ”If I had ”x” amount of dollars how I would spend it”; ”When I’m debt free”; ”When I’m financially ready to retire” type posts? We as an entire community love to dream about the ”what if’s” and ”whens”.

2) They work the hours that work for them.

We blog at all hours of the day. We squeeze it in when kids are napping, on lunch breaks, at midnight when the spouse is gone to bed. Some of us have quit our jobs to pursue this gig full-time and have the ability to really set their schedules how they like. Maybe working during a 9-5 timeframe isn’t ideal for efficiency. I enjoy working at night so if I was to ever go full-time with writing (not a desire of mine) I would probably take care of home things during the day and write at night because I know I’m usually more ”creative” during that time. I’m distracted during the day with other things.

3) They turn life’s obstacles around.

I love this and totally relate. I’m in a huge amount of debt, something I’ve come to see as a semi-positive thing. Because of the debt I’ve started this blog and ”virtually” met all of you. For this I’m grateful. I’m learning from mistakes (like how much I borrowed vs. how much I needed for school) and have many lessons to teach my daughter. Lessons that were never taught to me.

4) They people-watch.

While my idea of a good time is to plop me in a food court for a few hours so I can watch everyone we sort of do the same thing on the internet don’t we? I love reading personal stories, how people are achieving their goals, or in most cases within this community, surpassing them. We read personal blogs, our way of getting a glimpse into someone else’s life.

After reading this article I realise just how creative blogging and social media interaction is. When I think about people I know who just don’t ”get” blogging and social media they are people who I would likely consider less creative than I.

Do you consider yourself highly creative?

Five Key Features You Can’t Forget When Configuring an Online Shopping Cart

The online shopping cart within your eCommerce website is the yellow brick road that turns your window shoppers into paying customers. Aside from developing a high-quality website with quality content and product images, your shopping cart needs to be developed and configured accordingly. Achieving this goal is much easier than you might think as long as you remember to focus on six key features of your online shopping cart solution.

Product Images

Just because your gallery and other pages throughout your website have a vast collection of product images doesn’t mean that you should not include them in your actual shopping cart as well. Quite a few reports have confirmed that including product images within your online shopping cart service will actually keep your customers hooked and interested. Otherwise, the old “out of sight, out of mind” concept can backfire on you and cause your customers to lose that interest all together.

When choosing the perfect images to use, make sure that you cover more than one view and angle. You want your customers to be able to see the products that capture their attention from a variety of different angles and perspectives, according to Yahoo Small Business. Think outside of the box as well, especially when it comes to allowing your pictures to tell a complete story. For example, online clothing stores should have pictures of their products being worn by actual people, not just models. If you sell electronics, a picture of those devices being used by real customers can also come in handy.

Guest Checkout

You should view a guest checkout feature as a requirement for your online shopping cart instead of an optional luxury. One study confirmed that 14 percent of interested customers will actually abandon their shopping carts if the company does not offer a guest checkout feature. Forcing these customers to spend more time registering information, setting up a password and completing other steps that are not directly related to their purchase is a relatively quick way to give sales away to competitors.

Keep in mind that you will already capture most of the information necessary to set up a customer account (e.g., name, addresses, phone numbers, etc.) just by allowing them to process their orders regularly – without any interruptions. It would be much better to use this backdoor approach to capture that information while closing the sale than to risk losing the sale completely by requiring this information upfront.

A Progress Bar

As soon as your customer reaches your website, an invisible time clock starts and determines just how long they will wait on your website to provide them exactly with what they need. Therefore, you need to make sure that your online shopping cart comes with some type of progress bar. According to Geek Time, this will allow them to have a visual aid specifically to let them know how much more time is needed to complete their purchase. As mentioned earlier, every second counts so a progress bar will decrease the chances of your interested customers jumping ship for one of your competitors. However, you need to make sure your progress bar is clearly visible, presented in a clean manner and concise in nature.

Shipping Costs and Expenses

Even though it is not an actual feature, you still need to remember to include your shipping costs and associated expenses accordingly. It might be fairly tempting to leave this information buried within several lines of fine print toward the very bottom of your webpage, but doing so clearly would be a major mistake. While more than 40 percent of customers abandon online shopping carts due to high shipping costs, more than 20 percent will also leave because the shopping cart did not clearly disclose shipping costs.

If your shipping costs are too high to be competitive, consider searching for more affordable options. You can research a wide variety of shipping carriers along with their respective rates and services to find the most competitively priced web shopping carts to accept payments online. Even if the most affordable service might force you to break away from your comfort zone, the resulting increase in your conversion rate and generated revenue will make the sacrifice worthwhile.

A Welcome Mat

Another feature that needs to be included within your online shopping cart solution is a virtual welcome mat for your returning shoppers. Keep in mind that the average shopping cart abandonment rate is well more than 65 percent – but this does not necessarily mean that their abandonment was intentional.

Your consumers might be interested in returning to your website shortly after they left for one reason or another, so making sure that their existing shopping carts are still saved and ready to finalize is an important part of this process. One study states that close to 90 percent of sales processed online come from shoppers that have already visited the same website, according to Practical eCommerce.

February Debt Repayment Update

My kiddo has been quite  clingy the last few days, I managed to snap a picture of her needing to hold my hand :)

My kiddo has been quite clingy the last few days, I managed to snap a picture of her needing to hold my hand :) My biggest ”get out of debt asap” motivator.

Oh February. I am so very glad you are over. I know I’m a little late with this update but I’ve had a lot going on in the last two weeks (see insert: like a super needy kid) and this post kept taking a back burner, but as promised I will continue to post for accountability.

Even though it’s the shortest month in the year it feels like it takes forever to get over. February was a pretty decent month for me but I didn’t make many extra super debt payments. Womp Womp.

My goal from January is to put a minimum of $2068 per month on (non-mortgage) debt. This month I put $1543 towards debt, which isn’t really that stellar considering it’s not much more than our minimum payments, however I have some money in the bank.

For a few different reasons I had to move some funds around this month (like paying a bill for my sister then having to wait two weeks for her to pay me back). Anyway I’m hoping I can make up the $525 deficit this month with money that’s currently sitting in the bank and more funds coming. So though I didn’t exactly pay additional money towards the debt I do have some of  it, but just didn’t pay the additional debt down yet so will add it to March total. Fingers crossed for a super successful March!

I’ve picked up a few extra shifts at work between last month and into April. This isn’t something I can sustain doing though. Working five days a week in my job, at this particular office, with an almost two year old at home, and freelance work waiting for me at home just won’t work. I am a tough cookie but end of day Friday after working five days almost kills me. I am so sore physically it’s insane. It ruins my whole weekend too. There are things I could do that may help, like use loupes to work, but I don’t have a few thousand bucks to buy them! The other thing is to accept I have an awkward and physically demanding job and if I want to work long-term in this field and not sustain repetitive work injury, I need to cut back. Four days per week works for both my and my family right now.

So there it is. February sucked but hoping for better things in March!

 

When Is The Right Time to Sell Off Your Structured Settlements?

It is always very dicey to gauge the right time to sell off your structured settlements simply because of the various tricky things which are associated with them. One needs to be thorough about the whole process so that he/she doesn’t end up landing in no man’s land. There are certain things which one needs to take care of while selling structured settlements. Therefore, you will always be better off if you can do your homework well prior to resorting to taking such a step which will have a direct bearing on your financial assets. 

Checklist to have in place prior to selling off your structured settlements
It is always a good idea to jot down the questions and ask yourself why you want to sell off your structured settlements. This will not only help you to narrow down your research but also give you a chance to get the best possible returns you could possibly think of. Below are some of the common questions which will need your attention before you decide to sell off the settlement.
• Do I need all cash out of my settlement or should I go for a partial settlement?
• Is my research on how to sell off the settlement complete?
• Have I taken any advice or suggestion from a financial expert prior to selling off my settlements?
These are the three most basic questions which you would need to ask yourself and depending on the answer you get you should try and cover them first because these things can play a pivotal role in getting you the right kind of profit you are looking for.

Why you would want to sell a structured settlement

The next question which pops out is about the need of selling a structured settlement or in other words the answer to ‘what is the right time to sell off structured settlements’. There can be many reasons but some of the most common reasons have been put together for your reference:
• You want to clear a long term debt at one go.
• You want to buy a house and in order to do so you need a large amount of money in a lump sum.
• You don’t want to go for the EMI procedure while paying for your car. Instead, you want to finish it off by paying the entire amount.
• There is a very large outstanding credit card bill which you haven’t paid and you would a large chunk of money in order to cover it up.

Pros and cons associated with selling
The biggest advantage of having a structured settlement in place is that you get the benefit of having a regular income. This certainly augurs well if you don’t have a job or you don’t have a steady income. You will always feel secured and won’t fall in the danger of getting bankrupt. The disadvantage is that if you sell off your settlement then you won’t be able to enjoy the luxury of having a regular income from structured settlements. Therefore, the best way to go about this to partially sell of the settlement and keep the rest of it so that you also keep yourself open to receive a regular income even if it is for a smaller amount. Initially, you should try and sell your structured settlements in smaller chunks simply because it would help you to learn the tips and tricks of such a deal without risking a lot of your hard earned money. Don’t go for complete settlement sales straightaway since it might cost you in the long run.
Conclusion
Therefore, as you can see from the above lines there is not a thumb rule which states about the right time to sell of your structured settlements and this is entirely a subjective process. There are multiple factors which play a critical role and as a seller you would need to understand each and every factor before you choose to sell your settlements. Never be in a hurry when selling your settlements. If you are not sure, which in most cases you won’t, feel free to reach out to a financial expert so that you get the correct guidance which will enable to get the maximum profit out of the sale. The bottom line is you should only resort to selling your structured settlements if there is an absolute need for it. For example, you have tried every way and mean to collect or borrow money from other sources but even after the best possible effort you are unable to do so. Therefore, be sensible in your approach and opt for a holistic process so that you are always on the safer side of things.