JG Wentworth

[hpertrain]

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?   

[Anonymous]

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@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?   

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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.....

[hpertrain]

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@Anonymous wrote:

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@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?   

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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.....

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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.

[blindambition]

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!

[hpertrain]

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@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!

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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.

[gdale6]

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.

[blindambition]

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.

[hpertrain]

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@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.

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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.   

[Anonymous]

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@hpertrain wrote:

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@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.

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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.   

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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.

[tnhomestead]

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.