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What is JG Wentworth’s debt relief program?

JG Wentworth’s debt relief program is a debt settlement service that aims to help you resolve your unsecured debts by negotiating with your creditors to accept less than what you owe. The process involves enrolling your eligible debts into their program, stopping payments to your creditors, and instead, making monthly deposits into a dedicated account controlled by JG Wentworth. Once you’ve accumulated enough funds, their negotiators will attempt to settle your debts one by one.

How does JG Wentworth’s debt settlement process work?

The process of debt settlement with JG Wentworth follows the following four steps:

  1. Enroll your unsecured debts (credit cards, medical bills, personal loans) into the program.
  2. Stop making payments directly to your creditors and start depositing money into a special account managed by JG Wentworth.
  3. JG Wentworth’s negotiators will reach out to your creditors to settle your debts for less than the full amount owed.
  4. The negotiation process can take 2-4 years until all enrolled debts are settled.

What are the costs associated with JG Wentworth’s debt relief services?

JG Wentworth typically charges a fee ranging from 18-25% of your total enrolled debt balance. For example, if you enroll $50,000 in debt, you could pay between $9,000 and $12,500 in fees on top of the money you’ll need to pay to settle your debts. Keep in mind that these fees are in addition to the actual settlement amounts you’ll pay to your creditors.

What are the risks of using JG Wentworth for debt settlement?

There are significant risks to using JG Wentworth for debt settlement. The following are the most common risks:

  • Creditors are not obligated to settle, and they may escalate collection efforts, charge late fees and interest, or even sue you.
  • Your credit score will suffer significantly as you stop making payments and your debts go delinquent.
  • Even if a debt is settled, you may owe income taxes on the forgiven amount.
  • There’s no guarantee that all your enrolled debts will be successfully settled.
  • With JG Wentworth’s fees, it is possible that you will not save any money on a settled debt. Some have even experienced an increase in costs.

These risks are actually quite common and you should be aware of them. 

Is debt settlement with JG Wentworth a good idea?

Debt settlement, including JG Wentworth’s program, should generally be considered a last resort option. If you’re still able to make minimum payments on your debts, it’s better to explore other alternatives first, such as nonprofit credit counseling, debt management plans, or negotiating directly with your creditors. Debt settlement comes with significant risks and costs that may outweigh the potential benefits for many people.

How does JG Wentworth compare to other debt relief options?

While JG Wentworth is a well-established company, their debt settlement services are essentially the same as those offered by other debt settlement companies. Before committing to their program, it’s crucial to thoroughly assess your financial situation, consider all available options, and consult with an unbiased expert like a nonprofit credit counselor. This will help you make an informed decision based on your unique circumstances and understand the potential consequences of each debt relief path.

The Bottom Line

Deciding to use JG Wentworth for debt settlement is a serious choice that should not be made lightly. While their program may help some people resolve their debts, it comes with substantial costs and risks. Before enrolling, make sure you fully understand the potential impact on your credit score, the likelihood of being sued by creditors, and the tax implications of settled debts.

Explore all your options and seek advice from a trusted, unbiased professional to determine the best course of action for your specific financial situation.

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Jonathan Walker