How Does Buying Structured Settlements Actually Work?
A Closer Look at Discount Rates
The discount rate is a significant factor when selling structured settlements. It represents the reduced value a buyer offers to take over your future payments. But how are these rates determined, and are they truly fair?
Many sellers are surprised to learn that discount rates vary between 9-18%, significantly affecting the final amount they receive. Learning to negotiate these rates can turn the tide in your favor, significantly impacting your final takeaway.
It’s crucial to question the initial rate you’re quoted and actively seek better offers. A 1% difference on a substantial amount can translate to thousands of dollars saved or lost. How does one effectively bring down this rate?
In addressing these concerns, the key question remains: how much negotiating power do sellers really hold? The following pages will enlighten your understanding and arm you with the knowledge needed to emerge victoriously.