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Earn a high-yield savings rate with JG Wentworth Debt Relief
If you’ve found yourself drowning in a deep sea of unpaid bills, harassing debt collector calls, and interest charges that never stop compounding, the idea of signing up for a debt relief program can seem like the life raft you desperately need.
And in many cases, these debt relief firms promising to renegotiate, settle, or consolidate your balances for a fraction of what’s owed do provide a legitimate pathway out of financial ruin. But make no mistake – enlisting professional debt help needs to be done with careful consideration for the potential repercussions.
Before signing up for any debt relief program, it’s crucial you fully understand exactly what you’re getting into and weighing those pros and cons carefully. Because while potentially your best option to restore cash flow, these programs remain a serious financial decision not to take lightly.
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
How do debt relief programs actually work?
At their core, most debt relief solutions from revolve around two primary strategies:
- Debt settlement: These firms negotiate lump-sum settlements with your creditors for less than the full outstanding balance, allowing you to settle debts for a lower amount that’s more affordable.
- Debt consolidation: By consolidating all your debts into one new streamlined payment, either a loan or unified debt management plan, the goal is simplifying cash flow with an ideally lower interest rate.
While methodologies differ, most debt settlement companies follow a similar process:
- You begin depositing funds every month into a dedicated account which builds up a settlement fund.
- The debt firm initiates negotiations with creditors once the settlement fund reaches a target threshold, usually 6-12 months into the program.
- They aim to reach settlement agreements with each creditor, typically negotiating payoff percentages of 40%-60% of balances depending on your situation.
- You pay the agreed settlement amount to creditors, who then absolve remaining balances as resolved.
The advantages of debt relief programs
While subjecting yourself to a lengthy debt relief process may seem daunting, having professionals on your side does provide some compelling benefits versus trying to DIY debt settlement:
- Relief from harassment: The debt settlement company that you decide to work with will call your creditors to negotiate. You can also request that your creditors reach out to them instead of you regarding your enrolled debts.
- Lower total debt costs: The negotiation expertise of debt relief professionals often results in settling total obligations for lower lump sums than you could on your own. Less total repayment saves money. In the best-case scenarios, debt relief programs can indeed slash consumer debts in half or more through strategic negotiation.
- Manageable payment schedule: Your debt settlement program will have one monthly program payment that fits your budget.
The downsides to debt relief programs
While the allure of cutting your debt burden up to half is understandably tantalizing, enlisting in debt settlement comes with some financial side effects you have to withstand:
- Credit impact: By design, debt relief programs often require you to stop paying creditors entirely during the negotiation stage which damages credit with late payments and potential charge-offs.
- Potential tax liability: Any debt settled or forgiven over $600 is considered taxable income by the IRS which you’re on the hook for come tax time each year until the debt relief program concludes.
- 3+ year program length: From building a settlement fund to finalizing negotiations, most debt relief companies warn it takes an average of 24-48 months to complete their program depending on amounts owed. Of course, 24-48 months is a lot better than enduring indefinite years of debt, but just be aware that there’s no overnight solutions.
Work with an industry leader
You know our famous jingle, so isn’t it time you got to know why JG Wentworth has become synonymous with debt relief and structured settlements? Give us a call to speak with one of our dedicated debt relief specialists. If you have $10,000 or more in unsecured debt, you may be eligible for our Debt Relief Program.* Some basic perks to consider:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- 24/7 support
- We only get paid if we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side, helping you accelerate your return to financial freedom?
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A matter of circumstance
In the end, debt relief is designed to trade short-term financial anguish for long-term debt freedom. If you can withstand several years of credit damage, tax hits, fees and collection harassment in service of a manageable consolidated debt payoff, enlisting the professionals could be a prudent path forward.
However, those with pertinent needs for solid credit in that same upcoming timeframe may find debt relief more trouble than it’s worth. So, perform meticulous research on a provider’s process, estimated terms, fees, and actual results before enlisting their help to determine if it’s the right double-edged sword to wield against your ballooning debt burden.
About the author
*Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
