by John Darer CLU ChFC MSSC CeFT RSP CLTC
It is clear from both scientifically relevant structured settlement surveys and unscientifically irrelevant structured settlement 
surveys, that most people sell their structured settlement payment rights to help pay their bills.
Q. Why do people have bills?
You receive a bill because of a product or service you have purchased. It is important to distinguish between those products or services representing necessary staples such as food, basic clothing, shelter, fuel and medical and those that represent the cost of discretionary expenses like a new TV, the cruise, the latest gaming console or re-doing the kitchen with the latest Gaggenau range.
Q Why do people get into trouble with their bills?
Some possible reasons:
- Failure to budget.
- Failure to adhere to a budget
- Price increases in goods or services that stretch or exceed budgeted and available income resources
- Failure to monitor budget and adjust for increases in prices of necessary goods and services with a concomitant reduction in discretionary spending
- Unexpected large expense for unforeseen medical needs not covered by insurance (whether it be deducticles, co-pays or simply excluded from coverage)
- Loss of income due to job termination, death of spouse or divorce
- Excessive or irrational largesse due to Transition Stress from sudden money or sudden wealth (tort victims, beneficiaries of inheritances and lottery winners)
- Failure to set up, build up and commit to maintain an adequate reserve fund
The above possible reasons for not being able to pay bills is not limited to tort victims, or those tort victims who receive structured settlement annuity payments.
There's Nothing Sexy About Budgeting, But The Cost of Not Budgeting May Be Severe
Budgeting might not be glamorous, but the consequences of skipping it can be harsh. The old saying, "people don't plan to fail; they fail to plan," holds true, whether you have a structured settlement or have experienced being a tort victim.
For tort victims good practices start early and budgeting should be integral part of an ongoing settlement planning and litigation recovery management process.
Structured settlement annuities can be very helpful to the budgeting process by providing guaranteed income streams and deferred lump sum payments tailored to specific needs and time frames.
What Are Structured Settlement Annuities? Structured Settlement Annuities 2025
Types of Structured Settlement Payments | Structured Settlement Payment Options
Settlement Planning Financial Calculators 2025
Institutional expertise is available for those that need it or for those who would benefit from its convenience.
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