Hold on to your disability settlement
Take your time. Companies are preying on people with disabilities who have structured settlements. A structured settlement gives you tax-free regular payments so you can meet your normal expenses. But when something unexpected happens and you need money in a hurry, some companies try to get you to sell part of your disability settlement for quick cash. It’s called “factoring.”
The facts behind “factoring”? To get the cash, you must sign over some or all of your disability settlement payments for a period of time. The lump sum payment you get is less than the settlement payments that you sign over. So you’re signing away money you need to live on.
Before you sign on the dotted line, read What to Know Before Selling Your Disability Payments.