From CNBC: “Household debt balances through March totaled $14.3 trillion, a 1.1% increase from the previous quarter and now $1.6 trillion clear of the previous nominal high of $12.7 trillion in the third quarter of 2008 during the financial crisis, according to New York Federal Reserve data released Tuesday.” (May 5, 2020)
On Wednesday, the Treasury Department announced a new 20-year bond to help fund a record level of borrowing needed to boost the economy due to the COVID-19 pandemic. The government will auction $20 billion of the bonds on May 20. These longer-term bonds are especially appealing to insurers and pension funds as they seek longer maturities as a way to moderate risk.
With furloughs and layoffs dominating economic headlines during the pandemic, many households are finding it impossible to pay mortgage payments, college tuition and day-to-day expenses.
One bright spot: the current financial situation is not affecting structured settlement annuity payments. Injured parties continue to receive payments without worry of interruption. New personal injury settlement agreements containing a structured payment component are being written with the same assurances that payouts will be safe, secure and guaranteed.
Peace of Mind. Financial security in times of economic uncertainty is one of the most powerful benefits of structured settlements. Knowing that their income is guaranteed gives injured clients tremendous peace of mind–and the financial means to weather the storm.
Please feel free call with structured settlement questions
–Pat
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