Blog Post

Budgets and Settlement Planning for Life After Settlement

John Darer • Jan 06, 2024

Most People Who Sell Their Structured Settlements Do So To Pay Bills

Budgeting and Settlement Planning

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 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:

  1. Failure to budget.
  2. Failure to adhere to a budget
  3. Price increases in goods or services that stretch or exceed budgeted and available income resources
  4. Failure to monitor budget and adjust for increases in prices of necessary goods and services with a concomitant reduction in discretionary spending
  5. Unexpected large expense for unforeseen medical needs not covered by insurance
  6. Loss of income due to job termination, death of spouse or divorce
  7. Excessive or irrational largesse due to Transition Stress from sudden money or sudden wealth (tort victims, beneficiaries of inheritances and lottery winners)
  8. Failure to set up and maintain a 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.


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