JG Wentworth Debt Relief Review

Our take on JG Wentworth

JG Wentworth is known for excellent customer service reviews and optional legal support services. As with any debt settlement service, though, success isn't guaranteed and you'll pay fees. Debt settlement is rarely the best option for getting out of debt, and you may be able to find a more favorable alternative such as a debt consolidation loan, debt management plan, or even bankruptcy.

How JG Wentworth works

JG Wentworth’s primary debt relief program is a debt settlement service. For a fee, JG Wentworth negotiates with your creditors to settle your debts for less than you owe. However, the company offers alternatives to debt settlement, including debt consolidation loans and home equity cash-outs. 

Here’s how its debt settlement program works:

1. Talk to a debt consultant

After submitting an application, you’ll speak with a certified debt consultant who will review your financial situation and explain your options. If you choose debt settlement, you enroll in the program and move to the next step.

2. Begin funding your settlement account

You start making monthly payments into a dedicated settlement account. You can choose to set up the account through JG Wentworth with a third-party provider, which charges a fee, or choose an outside provider. 

3. Stop paying creditors

JG Wentworth negotiates with your creditors to reduce your debt balances. While it's not required, the company recommends you stop making payments on the debts you've enrolled. Keep in mind that creditors may charge interest and late fees. 

4. Approve settlement offers

If creditors agree to a settlement amount, JG Wentworth will ask you to approve the amount. The company charges a percentage of the enrolled debt as a program fee, which may vary by state and the amount of enrolled debt. There's no fee for debts that the company is unable to negotiate settlements for. 

5. Repeat until you complete the program

The program ends once you've approved settlement offers for all your enrolled debt. Programs can range from 24 to 60 months, but the process takes 24 to 48 months on average. There’s no guarantee that all debt will be settled.

Learn More: What Is Debt Settlement and How Does It Work?

Who is JG Wentworth best for?

• You are severely behind on debt payments: If you’re already behind on payments and have debt in collections, your creditors may be more willing to negotiate with a debt settlement service. 
• You can afford monthly deposits: The money you would normally devote to paying creditors goes to the settlement account instead, so you'll need room in your budget to afford the monthly account payments.
• You who want legal support: JG Wentworth offers an optional “legal insurance” service that provides you with legal representation if a creditor sues you over an account that goes delinquent while enrolled in the program. 

Who is JG Wentworth not best for?

• You have good credit: With good or better credit, you may qualify for a debt consolidation loan with a lower rate than you're currently paying, a smaller monthly payment, or both. A debt consolidation loan is less likely to cause long-term damage to your credit score than debt settlement, and it doesn't involve the risk of legal action from your creditors. 
• You have less than $10,000 in debt: You must have at least $10,000 in unsecured debt to be eligible for JG Wentworth’s debt settlement services. Eligible types of debt include credit cards, personal loans, medical bills, and private student loans.
• You have medical debt (and may qualify for other solutions): A debt relief program might not be the ideal method of dealing with medical bills, especially if you have a low income. Check your eligibility for Medicaid, ask your provider or hospital about charity care or interest-free payment plans, or consider negotiating medical bills yourself or with help from a service like Goodbill before resorting to debt settlement. 

Pros and cons

Like any debt settlement service, JG Wentworth has advantages and disadvantages. Weigh the pros and cons carefully.

Details on the pros

• Excellent customer reviews: JG Wentworth has a 4.8 out of 5-star rating on Trustpilot based on more than 29,000 customer reviews. Positive reviews praise the quality of customer service, while others found representatives to be unhelpful. 
• Optional legal insurance: JG Wentworth offers a service known as “legal insurance” for debt relief customers through a third-party law firm. This optional service provides legal representation for a small monthly fee if one of your creditors files a lawsuit during the settlement process. 
• Other financing options: JG Wentworth offers alternative financing options if debt settlement isn’t right for you, such as debt consolidation loans and home equity cash-outs for homeowners. 

Details on the cons

• Lack of clarity about fees: Fee-related disclosures on JG Wentworth's website are inconsistent and, in some cases, contradictory. The company doesn’t publicly disclose third-party account fees or the fee for optional legal insurance. 
• Will likely damage your credit: Working with JG Wentworth or any debt relief company can cause severe damage to your credit score, which can make it difficult to qualify for new credit in the future. 
• No guarantee of success: The company cautions that some creditors may refuse to settle debt or even take you to court to collect. If a creditor doesn't settle, a consultant will present alternative options. This is a risk of working with any debt relief company. 
• Taxes on settled debt: Another risk of using a debt settlement service like JG Wentworth is that the IRS generally treats canceled debt as taxable income. Exceptions include certain situations involving student loans.

How to qualify for JG Wentworth debt settlement

JG Wentworth offers an online prequalification process that won’t affect your credit score. You may qualify for debt relief if you:

• Have at least $10,000 in unsecured debt: Eligible debts can include personal loans, private student loans, credit cards, and medical bills.
• Live in an eligible state: JG Wentworth offers its debt settlement program in 31 states and Washington, D.C. Residents of 12 additional states who contact the company may be referred to law firms that provide debt resolution services.    

Fees

JG Wentworth program fees are percentage-based according to the amount of enrolled debt the company settles, but specifics are unclear. Various disclosures on the company website refer to the program fee as:

• 21%
• Ranging from 18% to 25%

You won’t know specific costs until you talk to a debt specialist. The fee for JG Wentworth's optional legal insurance service is undisclosed, as is the monthly fee for the settlement fund charged by the third-party provider.

Alternatives to JG Wentworth debt settlement

Debt settlement is not the best way to pay off debt in most financial circumstances. Consider these alternatives before using JG Wentworth’s debt settlement service. 

Debt consolidation loan

If you’re up to date with your payments and have a debt balance you can repay within several years, consider a fair credit debt consolidation loan. Paying off your existing debts with a new loan could mean saving money on interest or getting a smaller monthly payment. Your credit score will take an initial hit with the loan application, but paying off credit cards can improve your score quickly, and successfully repaying the loan can improve it over time. 

If you have bad credit, you’re not likely to qualify for a debt consolidation loan.

Debt management plan (DMP)

A nonprofit credit counseling agency can evaluate your financial situation and help you determine the best path forward. A credit counselor can also enroll you in a debt management plan (DMP). The counselor may negotiate fees and penalties and request lower interest rates or longer repayment terms from your creditors to reduce your monthly payment. Instead of paying your creditors, you make monthly payments to the agency. This can be a low-cost way to simplify repayment, help you stay on track, and reduce your balance without seriously damaging your credit score. 

However, you’ll need to close your credit cards to enroll, which could negatively affect your credit score. 

Negotiate with creditors directly

You might be able to negotiate with creditors on your own and get them to accept a lump-sum settlement or a payment plan that could include a reduced interest rate, a longer repayment term, and reduced fees. Some credit card companies may accept hardship agreements, for example. However, keep in mind that you would have to be your own advocate — researching your options, establishing contact with your creditors, and handling the negotiations. 

If successful, however, this could be a relatively low-cost way to reduce your monthly payments or overall debt amount.

Bankruptcy

If your debt seems insurmountable, your credit has already suffered, and you have no room in your budget for a monthly payment plan, bankruptcy may offer a solution. 

Under Chapter 7 bankruptcy, most unsecured debts are discharged within a few months of filing. Chapter 13 bankruptcy requires you to complete a three- to five-year repayment plan, after which your remaining eligible debts are discharged. Filing for bankruptcy also provides legal protection against creditors and debt collectors. However, bankruptcy stays on your credit report for years (up to 10 years for Chapter 7 and up to seven years for Chapter 13). Bankruptcy also involves court fees and attorney fees.

Other debt relief companies

See how JG Wentworth compares to other debt settlement companies in the table below.

JG Wentworth company details and history

JG Wentworth was founded in 1991 and is headquartered in Chesterbrook, Pennsylvania. The company launched its debt relief program in 2019. In addition to debt settlement services, JG Wentworth also offers:

• Structured settlement payment purchasing
• Home equity cash-out
• Cash advance
• Pre-settlement/lawsuit funding
• Annuities purchasing
• Lottery payments purchasing
• Debt consolidation loans through a third party

Contact information

You can access self-service options by logging into the JG Wentworth debt resolution portal. If you need assistance from a customer service representative, you can contact one using the contact information in the table below. Customer support hours are weekdays from 8 a.m. to 10 p.m. ET and weekends from 9 a.m. to 6 p.m. ET. 

Note: JG Wentworth closes on Thanksgiving, Christmas, and New Year's Day.