Finding Cash Resources in Your Assets in Hard Times

If you are having a hard time making ends meet this holiday season, you are not alone. The economy has forced the closures of many companies, the lay-off of thousands, and the pay reduction of many. There are a large number of people who have been injured and are unable to work. This is a tough holiday year for many.

There may be options available to you, however, if you have certain situations that can be worked with. There are cost-cutting measures, as well, in which you need not spend much money this season.

An alternative for holiday gift giving is to make gifts yourself – a gift basket with baked goodies, a wood carving, a sewn item, or something that you are good at. Give stamps and stationery. Or alternate family members you will give gifts to – and don’t give to everyone. For a free article on gift ideas, send an email to mailto:perfectgifts@zipresponse.com

Other possibilities you can explore is the sale of some of your assets and property – do you have things you really do not need and are like new? Do you have things you can take to consignment stores? Do you have a legal or insurance settlement that is paying soon or paying in installments (you can sell those off to get the cash now)? Do you carry a note on a mortgage or have an annuity you would like to cash in – in whole or on part? Can you sell an extra car? Do you have a pension you would like to get cash from? Do you have excess inventory you want to get rid of?

Have you called your credit card companies to try to make a payment arrangement with them? Many are sympathetic if you try to cooperate with them, and can often hold out a payment, perhaps a month from now. There are debt consolidation services that can do this for you, giving you one monthly payment at a reduced rate. You can also negotiate a credit card settlement – pay it off in an agreement, at a potentially huge reduction (you may have to pay taxes on the portion you are forgiven, so be prepared in April 2003).

You can also get an advance on your paycheck that you know is coming but not here yet when you are needing the money. There are places you can get to loan you cash for that check – it will cost you, but any of the options above will cost you – weigh out if it’s worth it to you.

The funds you may choose to advance will probably cost you about 20-60% of the amount you are taking out. This may sound like a lot, but if you realistically consider the alternatives, it may turn out to be very inexpensive. Think about the high interest rate you are paying on your credit cards – you can eliminate that. Think about your home and the possibility of foreclosure – anything is worth it to avoid that. You can re-invest the funds into an account that will earn you more. Or perhaps pay your child’s college expenses and secure his future. The trick is to weigh out the benefit and the cost of both sides (taking the funds out or not taking the funds out)

Then do not think of it as funds gone – just think of having the lesser amount available. The funds are considered to be in “future dollars,” which are deeply discounted to apply to “today’s dollars.”

You can get funding from a pending lawsuit – if you and your attorney are certain it will win, and if the case meets certain conditions. There is non recourse funding that you can seek (if you win the settlement, you pay the advance back in full plus interest – if you lose, you pay back nothing). This type of funding is expensive because there is no risk to you – only to the funder. The restrictions may be quite strict in this case. Fen-phen cases are good ones to fund is they are in the “Green Form” or “Tentative Determination Letter” stage. TDL cases are certain to be funded, if the amount is high enough to work, and all other factors fall into place.

If you have won a lawsuit but are waiting for payment, or you are getting monthly payments but need a larger amount fronted to you, you can get it advanced in full or in part, if your case qualifies. This means the paying party must be of high financial strength to be certain of pay-back. The amount must also be high enough to support the amount advanced, the fees, and the lawyer’s portion. It will normally need to have no other liens against it. Very small settlements are usually not “doable.”

You can also get lump sum funding from annuities, structured settlements, pension plans, and such. Insurance settlements will take a big hit –there is no “true” value until time of payment, so plan to take a large cut on that value. Pension plans are normally in the 40% of value range – you can sell the pension for 40% of its future value. Other plans will vary, depending on how the plan is set up.

There are programs in which you might pay the interest on a quarterly basis – perhaps 25% but for a 4 month period, so it’s more like 6-8% per month. Ask for terms before you commit – know what you are agreeing to. There are also scams operating and never intend to pay you the advance, and tell all kinds of lies in order to get you to sign. Be careful of whom you deal with.

It is possible to get funded within one to two weeks of the application submittal, in many cases. You should ask about this for the situation you are applying for. One of the biggest problems to get through is to get the support of your attorney. Attorneys are often not supportive of advance funding, even if it means the client loses his home. This may not make sense, but it is a reality. You might use wise discretion when you first choose an attorney. Once your paperwork is completed and submitted to the funder, it can be funded very quickly.

Paulina Roe is a funding agent, and has helped many people get their finances back on track, offering innovative solutions when possible. See what is offered at http://doubleii.com/finance.html