This article is about getting a structured settlement loan. It is certainly a dream that one day you wake up and find out that you have a large sum of money coming to you in payments over the next 20 years of your life. This can happen through winning a lottery or an injury lawsuit for example. In certain cases like this, what normally happens is that a structured settlement gets put in place for many reasons. The main reason is to help keep the person who is getting the money from spending it all before being able to fulfill their financial obligations. We have all heard this cases in the news where people have won large amounts of money only to lose it all within 3 years. The reason this happens is because people who are not used to handling such a large some of money will often times go out of control and buy anything and everything in sight. A structured settlement is sort of a method of payment to protect the receiver of the funds from losing everything due to mismanaging their money.

Now this makes a lot of sense for people who are young and have years left ahead of them but for someone who is older, a structured settlement might not make much sense since they may want to use the money before their time is up or at least use it to invest in something that will be beneficial to their children. This is where a structured settlement loan can come in. Basically, a company will pay money upfront to the receiver for a fee. The amount of the fee will depend on a lot of things such as the amount that they are advancing, how long the terms are, and a variety of other reasons.

Another reason why someone would want to pay a fee to get their money earlier is if they needed the money to make some sort of investment or purchase but didn't have enough money. You may have seen commercials on television where actors are happily smiling because they got their money that was being paid in payments right away. Although the concept of getting a structured settlement loan is quite simple, the procedure involves a little bit more than just signing papers such as need court approval in some cases. Also, you normally wouldn't be able to get the money and would have to wait about 3 months in most cases for everything to go through.

The system of handing money over to the receiver in payments has probably saved money people from spending way too much money and losing everything. Imagine getting a lump sum of money in the millions when the most money you ever had at one time was under $50,000. This can lead you to believe that you have so much money, you couldn't possibly spend it all. This mentality coupled with bad money management skills is one of the major causes of people losing all of the money they were supposed to use on something else like paying bills or saving it for their retirement or for their children.

Getting a structured settle loan may be right for you or it may be not. Just know exactly what it is you are planning to do with that money because if you don't, you will be a victim to the many scam artists out there who are just waiting for the chance to make that decision for you and take you for everything you have. Whether or not falling onto a ton of money is a blessing or a curse will depend on what you do with it. Choose wisely.