If you have become embroiled in a legal battle against a business, employer or other organization, the odds are almost always in your favor. An incredible 90% of lawsuits and legal cases that go to trial end up in a settlement that favors the individual who filed the suit.

And in the majority of these cases, the victor is awarded a settlement that is paid over a series of structured payments, spreading the money out over several years or decades. However, if these payments don’t work for you, you may be able to sell the rights to your structured settlement payments in exchange for a lump sum of cash.

Choosing to get cash for your structured settlement can be a great choice that works to your advantage — but it also has its drawbacks that shouldn’t be ignored. Here’s a look at the top pros and cons of selling a structured settlement that everyone ought to know:

Pro: Your money arrives within weeks, not years

Low on cash? Noticing that your debts are steadily rising? If so, it’s beneficial to inject some extra money into your regular income and get cash for your structured settlement. In most cases, you can take just a fraction of your settlement, meaning you’ll still have structured payments — they’ll just be slightly reduced.

Con: You are selling your future settlement payments at a discount

Companies that buy structured settlements don’t do so for free. It’s important for you to know that once you sell your structured settlement, you won’t be receiving the full amount of the settlement due to this. Additionally, changing inflation rates may lower your settlement’s worth over time.

Pro: Having a lump sum allows you to invest and grow your money

With a lump sum, you can invest your settlement money in a number of areas that will allow you to grow your funds and build up a successful portfolio. When you sell your structured settlements to make investments, you can also avoid inflation lowering your settlement’s value.

Con: You’re more likely to develop bad spending habits

A structured settlement can be a great way for people to have a steady income over time that requires them to control their spending. With a lump sum, however, there is nothing stopping you from making unwise purchases and throwing your money away. If you don’t have the self-control to use your settlement money wisely, you might want to stick with a structured settlement rather than seek cash for your settlement.

Want to know even more about the advantages and disadvantages of getting cash for your structured settlement payments? Ask us anything by leaving a comment below!