Lump Sum vs Payment Plan Comparison
Compare settlement scenarios side-by-side to understand tradeoffs between immediate lump sum settlements and structured payment plans.
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Understanding Your Options
When to Choose Lump Sum
A lump sum settlement makes sense when you have access to funds (savings, loan, family support) and want immediate resolution. You'll save significantly on total cost and can move forward faster.
When to Choose Payment Plan
Payment plans work better when you need to preserve cash flow, don't have immediate access to large sums, or want to maintain financial flexibility. While you'll pay more over time, monthly payments may be more manageable.
Hybrid Approaches
Some negotiations result in hybrid settlements: a larger down payment followed by shorter payment terms. This can reduce total interest while keeping monthly payments manageable.
Important: This calculator provides educational estimates only. Actual settlement terms depend on negotiation, creditor policies, and individual circumstances. Consult appropriate professionals for specific guidance.
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