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Make Debt Resolution Your New Year’s Resolution
by
JG Wentworth
•
December 23, 2024
•
7 min
The start of a new year marks a clean slate for setting, and achieving, future goals. However, with record-breaking credit card debt closing out 2024, many Americans find their slates a little less clean as they would like. Compounded by high interest rates and inflation, it may feel like there’s no way – or point – to making any New Year’s resolutions for 2025.
That is, unless you decide to make debt resolution your New Year’s resolution. If you’re finally ready to stop living under the looming shadow of credit card debt, you’ve come to the right place. Let’s go over a few tips and methods you can implement to move your financial needle in the right direction in the New Year… and stay there.
Visualize your journey
In this blog, we’ll break down the following tips that will help make 2025 the year you get back on financial track…
Know where you stand
As the popular Chinese proverb says, “A journey of a thousand miles begins with a single step,” and achieving debt resolution is no different. First things first: know where you stand financially.
- How much do you owe?
- What is your APR?
- When will you pay it off?
These may sound pretty basic, but you’d be surprised how many people don’t have a clear understanding of their debt. Use our free debt calculator to crunch your numbers, or you can determine your monthly APR following these steps:
- Find your current APR and balance in your credit card statement.
- Divide your current APR by 12 or 365 to find your monthly or daily periodic rate.
- Multiply that number with the amount of your current balance.
Keep in mind that store / retail cards have the highest of the high interest rates. Ideally, the best way to borrow is to pay no interest at all, and you can do that if you’re able to get a 0% APR card. Of course, this only means you’ll pay no interest for a certain period of time (generally up to 21 months), so you may not have to pay interest charges on purchases made now until August 2025.
Choose your plan of attack
Once you have a clear picture of the state of your debt, the next step is to determine the best strategy to move forward. Since everyone’s financial situation is unique, there is no one-size-fits-all solution. The two main methods for getting out of debt are resolution and consolidation.
Debt resolution
Debt resolution programs can be an effective way to pay off your debt faster, and potentially for less than what you owe. When it comes to JG Wentworth, our Credit Card Debt Relief Program works a little something like this:
- First, we determine if your debt qualifies.
- If it does, you pay one monthly program payment into an account that you control with an insured financial institution.
- After you enroll and set aside funds, our team of skilled negotiators works with your creditors on your behalf to lower each enrolled debt (potentially by thousands of dollars).
- We keep in touch every step of the way. Our 24/7 online portal allows you to check your progress at your convenience.
On average, our clients get out of debt in as little as 24-48 months.
Debt consolidation
Juggling multiple debts with varying interest rates and payment schedules can be overwhelming. When you choose consolidation, you combine your debts into a single, more manageable payment. This streamlined approach simplifies your financial life, reducing stress and helping you regain control. When it comes to consolidating your debts, there are a few options to choose from…
- Consolidation loans are great if you’d like the stability of paying off your debts in equal installments over a set period.
- Balance transfers are ideal for people who want the flexibility of making payments of varying amounts for an indefinite amount of time while interest grows.
- Secured debts can be consolidated – by refinancing your home, for example – but this process is not always as straightforward as simply applying for new credit. Often, this type of consolidation requires consultation with an appraiser before a new loan can be negotiated.
Not sure if debt consolidation is right for you? We can help you figure that out. Whether you choose debt resolution or consolidation to get out of debt, staying out of debt is a different ball game altogether…
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Stay winning
Getting out of debt is just half the battle. The key to living a financially flexible life is to stay out of debt, and the only way to accomplish this is to make some lifestyle adjustments. Continuing the habits that led you into debt in the first place will only lead you back into debt. Something’s gotta give, whether that’s reducing the amount you spend or increasing the amount you earn.
Here are a few other strategies for staying out of debt in the New Year and beyond…
- Budget your expenses: Start by reviewing past months’ bills and make a list of your recurring expenses, ranked based on importance (true necessities, emergency fund, etc. at the top of the list). Then, determine your monthly take-home and eliminate any expenses that exceed that amount. After that, it’s just a matter of sticking to your plan and monitoring your performance.
- Automate your payments: Adding automatic monthly bill pay to your credit cards and other recurring expenses will ensure you don’t forget any payments and offer some peace of mind (providing you have the funds to cover them). You can choose to pay the monthly minimum, the full amount due, or a customized amount. But keep in mind minimum payments won’t help you stay debt free. You’ll need to choose the “pay full balance” option in order to ensure you don’t rack up more debt again.
- Put the card away: If the temptation of using credit is strong, consider transitioning to a cash-only lifestyle for a while. You can always cut up your card or lock it in a drawer somewhere. Taking your card out of the picture while keeping your account open is preferable to actually closing it because your account will continue reporting positive information to the major credit bureaus every month.
The bottom line
Overcoming credit card debt might seem like an endless uphill battle, but you can take steps to level the playing field. With a little organization, discipline, and patience, you can ensure that every new year moving forward will be more financially stable than the last.
There’s always JG Wentworth…
If you have $10,000 or more in unsecured debt there’s a good chance you’ll qualify for the JG Wentworth Debt Relief Program.* Some of our program perks include:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- We only get paid when 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?
SOURCES CITED
Dickler, J., “Personal Finance Credit card debt hits record $1.17 trillion, New York Fed research show.” CNBC. November 13, 2024.
Dickler, J., “The Fed slashed interest rates, but some credit card APRs aren’t going down. Here’s why.” MSN. December 9th, 2024.
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* 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.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.