A Popular Trend - Cash for Settlement

By: Vikki Paige
Submitted: 2007-01-17 16:17:15
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In legal matters, and even in the lottery, the popular trend these days is to accept a cash settlement. But are cash settlements really the most beneficial choice for you?

Cash settlements are attractive for a number of reasons. In most cash settlements, you will be able to get all your money in one lump sum all at once. Many people prefer this for obvious reasons – for who wants to wait for their money or receive small, regular payments? Cash settlements are often easy to obtain and there is little paperwork involved, which makes everything quick and easy. Quick and easy is very important in today’s fast-paced, high-tech world where everyone is on the move, so cash settlements sound pretty good in these cases. Accepting a cash settlement also settles things, obviously. You will have to do nothing else but take your money and leave.

The ease of cash settlements makes them attractive to many, so attractive that they end up accepting less money than what is owed to them. Because cash settlements do not come with no strings attached – very often, you will be forced to accept less than what is due in order to receive that large lump sum. And this is the major drawback of cash settlements.

For instance, Margot wins the state lottery. If she takes the cash option, she does not receive the entire prize pool. In the lottery, when winnings are so enormous, this many make less difference. But in legal matters, the difference can be much greater and can mean a lot less money received on your end if a cash settlement is used.

A good rule of thumb to follow is to trust your own instincts and know your own needs. Would it be better for you to receive a cash settlement in a large lump sum, so you will have all the money right away? Or would you be able to survive on a monthly or even yearly payment of the total sum? How much money will you lose if you accept a cash settlement, and is it so much that you can’t settle? No one knows your needs better than you, so follow your own counsel when considering cash settlements.

Lawyers very often push for cash settlements in legal matters. It is easy to accept a cash settlement than to go to trial, where you may not win your case. However, if you believe your case is very strong and that you will be rewarded much more than the cash settlement offered, you may decide not to accept a cash settlement. Your lawyer will have some advice, but you do not always have to follow that advice. If you do not think a cash settlement is right for you, then don’t accept one.

Because cash settlements represent money in the hand, right now, many choose not to pursue matters beyond the offered cash settlement. The choice will be up to you when it comes to cash settlements. Again, no one knows your needs better than you.

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