A woman who won millions in the Virginia sweepstakes 11 years ago is currently immersed in debt obligations to a Florida company that lent her money by using the winnings as a collateral. Suzanne Mullins won $4.2 million in 1993 but now owes $154,147 after a circuit judge made the decision that she owe money to the Florida leading company.
Mullins just could not be located to obtain the statement. Her counsel, Michael Hart, stated that her debts started to climb and accumulate when her son-in-law had a lengthy illness and was uninsured. Mullins used her lottery winnings to pay for the treatment. This uninsured medical treatment ran up over $1 million in medical expenses prior to his passing.
“It has been a tough road,” Hart said. “It hasn’t been taking a jet plane going to the Bahamas.”
When Mullins won the jackpot in January 1993, she plotted out to divide the cash three parts together for her husband and to her daughter. Right after taxes, Suzanne Mullins’ share worked out to twenty yearly payments of $47,778.84.
However the payments weren’t sufficient enough, and cash got tight. Mullins made the decision and applied for a loan with People’s Lottery Foundation, a company in the financial niche to assist lottery winners who require their money a lot faster than the yearly payments. The foundation loaned Mullins $197,746.15, which actually she intended to pay back with her annually checks from the Virginia lottery.
However, once lottery policies changed in 2000 to help winners to harness their money in a lump sum payment, Mullins made a decision to cash in on the rest total amount. She didn’t choose to make any more payments on the loan right after February 2001, as stated by a legal action filed by Singer Asset Finance Co., a Delaware company that represents the People’s Lottery Foundation.
Mullins’ lawyer states that her clients current financial condition is that she is incapable to pay back money since all her lottery winnings have been exhausted and that Mullins hasn’t got any lottery winnings left.
Tom Nasta of Personal Financial Planning in Roanoke mentioned it isn’t uncommon for people to end up broke right after winning the sweepstakes. Nasta mentioned he once managed a client who won $1 million and went through the lottery earning with only a mobile home to show for it after 7 years.
So if you are given a 6 figure windfall from the lottery remember that you still needs to budget your money effectively and leave some money for rainy day. Sickness and illnesses might pop up and these medical cost can become costly so you need to plan for that rainy day. Take into consideration the things you would probably do this much cash and determine how this matches up with your financial plan and goals. This could easily help you decide what actually matters within your personal situation. You’ll be able to fine-tune your plans and certain goals as necessary.
Winning the lottery is not a saving grace in some cases but a curse. It’s what you do with your lottery winnings and how smart you are that can secure you future.
With that said playing the lottery can give you all your dreams. If you were to win the lottery what would you do with the money?