If you’ve recently won a legal battle that left you with money in settlement form, you have the opportunity to receive a great deal of money by selling that settlement for cash. All of that money can be exciting, but if you’re a young adult or recent college grad, there are a lot of financial obligations that you may not have considered as you enter adulthood.
- Student Loans.
Many graduates are so excited to finish up school and get their degree that they?ve forgotten about all the loans they have borrowed the past four years of university. Students who graduated in 2015 are expected to have, on average, about $35,000 worth of loans. Sometimes student loan companies will give you a six month grace period before you have to start paying back the loans, but even then you may not have found a solid job or have the funds available to make repayments. If you get cash for your settlement, you can use that money to pay a majority of your student loans, depending on the size of the settlement. The sooner you can eliminate debt , the less interest rates you?ll accumulate. You can actually save yourself some money in this instance.
- Cost of Living.
When you?re in college, a lot of your needs are met right on campus and many living expenses are included in your tuition. You don?t think about how much meals cost, because you can get a meal with the swipe of an ID card. You don?t take rent into consideration, because room and board is already taken care of in tuition costs. Daily, weekly and monthly living expenses add up fast?especially if you?re living on your own for the first time. You may have a job, but a lot of entry-level positions do not pay well enough to provide you with disposable income. Most Americans (about 76%) are living paycheck to paycheck. The cash for your settlement can be budgeted smartly and used for day to day expenses so that you have the financial freedom to spend your settlement cash on other things once your basic needs are met.
- Unexpected Crisis.
Often, settlement recipients get excited because of their new-found wealth and make a purchase. Whether it is for a luxury item or an expensive vacation, they spend a good portion of their fortune and do not save as much as they should. It is hard to predict the future, but it is smart to save the cash for your settlement for an unexpected crisis. A medical emergency could happen at any time and you could find yourself with mountains of hospital bills. A disaster like a storm or residential could occur and leave you with irreparable damage to your home and property. You could think of a million instances where mayhem could strike and if you don?t have money to help you when you need it, you?ll be in greater trouble than before.