Many people struggle with debt, finding that their outstanding balance continues to increase despite efforts to pay it off. If you feel overwhelmed by the amount of money you owe, a debt consolidation company like JG Wentworth may be able to help.
What Is JG Wentworth?
JG Wentworth is a Pennsylvania-based company with more than 30 years of experience helping clients resolve their unsecured debts. Services include negotiating with creditors on behalf of their clients for more favorable terms and offering lump-sum payments as part of a structured settlement.
The program requires a monthly fee plus a closing fee in the amount of 18% to 25% of the debt. Clients that enroll in the program usually pay off the debt in 24 to 48 months by making a single monthly payment to JG Wentworth instead of paying each creditor individually.
You should expect to see your credit score drop when you enroll in a program with JG Wentworth. This is because you stop paying your creditors directly and pay off your debt through the debt settlement company. Despite the drop, settling your debt in this way typically results in less of a credit score drop than declaring bankruptcy.
Who Qualifies for Debt Relief?
Before you begin, you need to understand the eligibility criteria to qualify for JG Wentworth’s Debt Relief Program:
- Have a minimum debt of $10,000
- Reside in one of 30 qualifying states or Washington, D.C
- Provide proof of your long-term financial hardship
- Demonstrate the inability to save the required money to pay off the debt
Collect documentation of your debts and financial situation. If JG Wentworth negotiates with your creditors to settle your debt for less than you owe or secure a different repayment plan, they must have access to this information.
What Types of Debts Are Covered?
JG Wentworth offers solutions to resolve outstanding unsecured debts. The following types of debt are eligible for the program:
- Credit cards
- Gas cards
- Department store credit cards
- Unsecured personal loans
- Some types of student loans
- Unsecured lines of credit
- Debt consolidation loans
- Payday company loans
- Medical debts
- Peer-to-peer loans
You can speak to a knowledgeable representative to get more information and find out if your specific situation makes you eligible for the program.
How Does JG Wentworth’s Debt Relief Program Work?
JG Wentworth assesses your entire debt to determine your eligibility. Once you qualify, you must open an account to deposit your single monthly payment. This account remains in your control. Upon your approval into the program and receipt of your first payment, JG Wentworth goes to work for you to renegotiate your debt with your creditors.
There are no additional up-front fees, but you are responsible for making the monthly deposit into your account. You can also expect a closing fee of between 18 and 25 percent of the debt amount settled. The company will add this amount to your monthly payment.
It’s important to fully understand how these fees will affect your total monthly payment and the total you will owe for the program. Fees can add up quickly and balloon your required payment until it reaches an unmanageable amount. The goal is to get out of debt quickly, so you must weigh the benefits and drawbacks of your unique financial situation and budget to determine if the Debt Relief Program is a good fit for you.
Benefits of JG Wentworth’s Debt Relief Program
JG Wentworth is a well-recognized name in debt relief solutions. The Better Business Bureau gives it an A+ rating and reports a 100% business response rate. Clients can generally expect fast communication regarding any complaints, along with excellent customer service.
There are numerous advantages to choosing this company. First, it has been in business for 31 years and has the experience needed to deliver satisfying results to clients. JG Wentworth has built a positive reputation, making it a trustworthy option for many. Not only is the company well-known by clients, but JG Wentworth also has an established relationship with many major creditors. This could work to your benefit as the company has the authority to negotiate your debt.
Debt settlement always comes with associated fees for the service you get. However, JG Wentworth is a good option for many clients because you won’t owe any up-front fees. Any fees charged wait until your program is approved and you begin making your monthly payments to resolve your debt.
Another great advantage is the price guarantee the company provides. You know you’ll get the best price available for your debt settlement because JG Wentworth will give you a check for $1,000 if they can’t do better than a lower-priced offer you receive from another company.
Disadvantages of JG Wentworth’s Debt Relief Program
While JG Wentworth is an excellent debt settlement option for many clients, there are some drawbacks to consider before you commit to the program. One major concern is the higher-than-average closing fee. Any debt relief company you work with charges fees. However, JG Wentworth’s minimum fee of 18% of the settled debt is higher than the typical 15% that others charge.
Also, the type of debt you have matters. JG Wentworth programs are for unsecured debts only, meaning any debts you owe that aren’t backed by collateral. Secured debts require that you take action to contact your lender to discover if they have hardship programs or alternative repayment options if you can’t repay according to your current terms.
It’s also crucial to remember that even if you qualify for a Debt Settlement Program by JG Wentworth’s eligibility criteria, your creditors are not under any obligation to work with a debt settlement company. If they refuse, they can still take action against you to recoup their money, such as collections activity or even suing you for nonpayment. Keep this in mind while you explore your options for debt relief and have a plan in place to handle any debts that aren’t included in your JG Wentworth settlement.
The Bottom Line
If you are considering working with a debt settlement company to get relief from your outstanding debt, know what to expect in advance. Gather your financial paperwork and know exactly what you owe and what you can afford to pay each month. Ask all your questions and read the terms of your Debt Relief Program Carefully before you sign so you can make an informed decision.
Debt relief programs require a big commitment, and the process has both pros and cons. You must decide if the terms align with your financial goals and if the offer you receive is a good fit for your budget and unique situation. Consider both the short-term and long-term effects, such as monthly payment costs, total program costs, and the effect on your credit score. For example, is it better for you to have a decent credit score in the near future, or more beneficial to accept a lowered score now but work toward rebuilding it even better as you become debt free? Enrolling in a program with JG Wentworth is a personal choice that requires careful thought. However, it can be a great way to pay off your debt quickly and regain control of your finances.
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