topic Re: JG Wentworth in Rebuilding Your Credit

JG Wentworth

hpertrain — Thu, 24 Jun 2021 16:49:08 GMT

So I was "approved" by JG Wentworth for a debt consolidation loan. I've been wanting to consolidate all my debt

to just one monthly payment. They were able to do that and now I'm just wondering if this is a too good to be true

scenario. My credit score is in the 500's but I guess they could see from a soft pull that I'm making my payments each

month with the exception of two 30 day lates.

JG Wentworth seems to be a legit company and this does seem like a good opportunity. Any thoughts on this positive

or negative so I can make a decision and stop with the second thoughts?

Re: JG Wentworth

Anonymous — Thu, 24 Jun 2021 17:16:47 GMT

@hpertrain wrote:
So I was "approved" by JG Wentworth for a debt consolidation loan. I've been wanting to consolidate all my debt
to just one monthly payment. They were able to do that and now I'm just wondering if this is a too good to be true
scenario. My credit score is in the 500's but I guess they could see from a soft pull that I'm making my payments each
month with the exception of two 30 day lates.
JG Wentworth seems to be a legit company and this does seem like a good opportunity. Any thoughts on this positive
or negative so I can make a decision and stop with the second thoughts?

Legit? I guess so. Might also be a bit predatory.

What's the APR? How much total interest would you be paying? Unfortunately, with scores in the 500s, I wouldn't be expecting a prime rate loan. I'd be expecting them to make a lot of money off you.....

Re: JG Wentworth

hpertrain — Thu, 24 Jun 2021 17:33:38 GMT

@Anonymous wrote:
@hpertrain wrote:
So I was "approved" by JG Wentworth for a debt consolidation loan. I've been wanting to consolidate all my debt
to just one monthly payment. They were able to do that and now I'm just wondering if this is a too good to be true
scenario. My credit score is in the 500's but I guess they could see from a soft pull that I'm making my payments each
month with the exception of two 30 day lates.
JG Wentworth seems to be a legit company and this does seem like a good opportunity. Any thoughts on this positive
or negative so I can make a decision and stop with the second thoughts?
Legit? I guess so. Might also be a bit predatory.

What's the APR? How much total interest would you be paying? Unfortunately, with scores in the 500s, I wouldn't be expecting a prime rate loan. I'd be expecting them to make a lot of money off you.....

Thanks for responding. The rate is 18.99%. I've been paying up to $2K per month between the personal loans and CC's. The

monthly payment they're offering is $959.25 per month. I'm hoping this would help offer some light at the end of the tunnel.

The $2K + per month seems to be going no where. The $959 per month is for 32 months.

Re: JG Wentworth

blindambition — Thu, 24 Jun 2021 19:24:43 GMT

I would try other options, but if you've exhausted those, it's better than high interest cards. Does that include their fee?

Consumer Reports has an article on them, seems legit, just predatory on fees.

Consolidating may help get a better loan down the road, with a CU, then you can pay JG Wentworth off. Finances before FICOs!

Re: JG Wentworth

hpertrain — Thu, 24 Jun 2021 19:43:09 GMT

@blindambition wrote:
I would try other options, but if you've exhausted those, it's better than high interest cards. Does that include their fee?
Consumer Reports has an article on them, seems legit, just predatory on fees.
Consolidating may help get a better loan down the road, with a CU, then you can pay JG Wentworth off. Finances before FICOs!

Thank you so much! Could not agree with you more "finances before FICOs!" I like the idea of getting a possible loan with

CU down the road to pay them off. By chance do you have any suggestions on other options as oppossed to Wentworth?

I've come to the conclusion a settlement/ consolidation loan is my only way to go to finally get the high predatory CC and personal

loan debts gone for good.

Re: JG Wentworth

gdale6 — Thu, 24 Jun 2021 21:17:51 GMT

One thing to consider is if the JGW loan has prepayment penalties. What is going to happen here is your Ficos are going to rise substantially when the cards are all paid off. You might have a CU waiting in the wings or even several of them for refinancing it in short order as long as the CU interest rates are lower.

Re: JG Wentworth

blindambition — Thu, 24 Jun 2021 21:38:53 GMT

I meant like family, extra hours, additional jobs to help. With your scores, all the loans you may get will also be higher. Best Egg, Lending Tree, Prosper and the likes of those loans.

Re: JG Wentworth

hpertrain — Thu, 24 Jun 2021 22:11:22 GMT

@gdale6 wrote:
One thing to consider is if the JGW loan has prepayment penalties. What is going to happen here is your Ficos are going to rise substantially when the cards are all paid off. You might have a CU waiting in the wings or even several of them for refinancing it in short order as long as the CU interest rates are lower.

Good point They do not have a prepayment penalty. I've established that. That would be great if the Ficos do increase significantly

after cards are paid off. One thing I do want to mention is some of the debt is from personal loans such as Lending Club.

I would very much like a CU to be waiting in the wings so I can then pay off Wentworth.

One concern I have, which I'm finding out more about, is they take monthly payments for 90 days and put in "escrow"

while they "negotiate" with the creditors.

Re: JG Wentworth

Anonymous — Thu, 24 Jun 2021 22:19:43 GMT

@hpertrain wrote:
@gdale6 wrote:
One thing to consider is if the JGW loan has prepayment penalties. What is going to happen here is your Ficos are going to rise substantially when the cards are all paid off. You might have a CU waiting in the wings or even several of them for refinancing it in short order as long as the CU interest rates are lower.
Good point They do not have a prepayment penalty. I've established that. That would be great if the Ficos do increase significantly
after cards are paid off. One thing I do want to mention is some of the debt is from personal loans such as Lending Club.
I would very much like a CU to be waiting in the wings so I can then pay off Wentworth.

One concern I have, which I'm finding out more about, is they take monthly payments for 90 days and put in "escrow"
while they "negotiate" with the creditors.

This does not sound at all like a consolidation loan. This is a debt management plan. No CU will be "waiting in the wings" to deal with this one. Your accounts will all be marked with "DMP" and it will basically halt any credit until it comes off.

This is where they let all the accounts go delinquent to negotiate a lower settlement (wrecking you for the next 7 years). If you only have 2 lates currently, again finances over fico, there must be another option out there.

They will settle the accounts for substantially less and keep a substantial part of your payment for "negotiating" these debts for you and giving you 1 payment amount.

You could save a lot of money by just letting them go delinquent and negotiating them yourself (which I am not suggesting). You could put aside $2k/mo while they go delinquent and then offer lump sum settlement.

Re: JG Wentworth

tnhomestead — Thu, 24 Jun 2021 23:08:33 GMT

If they can negotiate with your creditors, so can you. If they hold payments for 90 days, what happens to your credit then? Seems like a waste of money, put it this way, if they think they can get you out of debt at their stated cost while paying salary, rent and profit - why can't you do it yourself?

And this sure doesn't sound like a debt consolidation loan. Sounds a lot more like okay, we stop paying your bills so everyone is willing to settle deal.

Re: JG Wentworth

Anonymous — Thu, 24 Jun 2021 23:46:10 GMT

Agreed completely with @Anonymous - this sounds like a DMP which will basically destroy your credit. I would not go forward with this.

Re: JG Wentworth

OmarGB9 — Thu, 24 Jun 2021 23:48:45 GMT

@Anonymous wrote:
Agreed completely with @Anonymous - this sounds like a DMP which will basically destroy your credit. I would not go forward with this.

I third this. Do NOT do this.

Re: JG Wentworth

blindambition — Fri, 25 Jun 2021 00:08:21 GMT

@hpertrain wrote:
@gdale6 wrote:
One thing to consider is if the JGW loan has prepayment penalties. What is going to happen here is your Ficos are going to rise substantially when the cards are all paid off. You might have a CU waiting in the wings or even several of them for refinancing it in short order as long as the CU interest rates are lower.
Good point They do not have a prepayment penalty. I've established that. That would be great if the Ficos do increase significantly
after cards are paid off. One thing I do want to mention is some of the debt is from personal loans such as Lending Club.
I would very much like a CU to be waiting in the wings so I can then pay off Wentworth.

One concern I have, which I'm finding out more about, is they take monthly payments for 90 days and put in "escrow"
while they "negotiate" with the creditors.

This company does do lending, but what you are now describing is structured settlement, basically a Debt Management Plan, which was pointed out up thread.... RUN for your life. Do not pass go, and do not collect $200.

Re: JG Wentworth

calyx — Fri, 25 Jun 2021 18:43:12 GMT

I won't echo what the others have said but do agree with staying away from JGW in this case, and trying to negotiate on your own.

I know that your credit/score are not good, but I would still encourage you to look at local small credit unions/banks, particularly if there are ones associated with your workplace/memberships to see if you can get an actual consolidation loan with them. I've found they tend to have better terms (no-prepayment penalty, the ability to make principle only payments, etc). I've found that the more restricted CUs I've banked with have been really, really good at being more personal with their lending and far more helpful towards someone with not-great credit and listening and being helpful.

Re: JG Wentworth

FireMedic1 — Fri, 25 Jun 2021 21:13:42 GMT

Best bet. Start a thread with all your debts one by one with company name/credit line/ balance owed. Many of us can figure out a plan to get you out of the hole your in. Most of all. Were free!!!!!!!!!!!!!!!!

Re: JG Wentworth

designated_knitter — Sat, 26 Jun 2021 05:21:17 GMT

They are actually WORSE than a DMP. A legitimate DMP will work with creditors to negotiate lower interest rates and you make a consolidated payment which they then distribute each month to each creditor. It appears as "managed by a Debt Management Company" on your credit reports.

I had an attorney once who contacted me when I had a lot of unsecured debt. Said he could get it settled for something like 25 cents on the dollar or something stupid like that. i kept asking "what's the catch" and finally, he admitted that they don't make any payments to any creditors for 30, 60, 90 days so that the creditor sees you "in distress" and then they are willing to settle for less than the balance.

You're better off declaring BK than having ALL your credit cards go 30/60/90 days late... you'd NEVER get credit again!

RUN... DO NOT WALK... to the nearest exit. Block their number.

If you really need help, get a legitimate not-for-profit debt management company -- stil not ideal but far better than destroying your credit so you can save some money in the short-run. If you're going to destroy your credit, go Ch-7 and do it right! The rebuild after that is far faster than what JGW is proposing... and a lot cheaper!