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J.G. Wentworth Blog

About Structured Settlement Loans

Hi folks, J.G. Wentworth here. Sometimes when folks call us to talk about selling their structured settlement payments, they are surprised to hear that J.G. Wentworth does not make settlement loans. Today I would like to talk about why that’s the case – and why we believe that, in many cases, selling your structured settlement payments to J.G. Wentworth is better than getting a structured settlement loan.

First and foremost, let’s figure out the difference between a settlement loan and the kind of structured settlement payment purchases that J.G. Wentworth offers.

Basically, if you are trying to arrange a settlement loan, you are using your structured settlement payments as collateral, guaranteeing repayment of the loan through a certain number of your future payments. You may also have to guarantee the loan using some of your other assets. In a structured settlement payment buyout, on the other hand, J.G. Wentworth will simply purchase outright, your future structured settlement payments for a lump sum of cash.

While there may be some advantages to arranging a structured settlement loan, there are also pitfalls. If, for example, something goes wrong in your repaying the loan with your settlement payments, you may have to come up with that money through other means. Failure to do so could mean increasing your debt and damaging your credit score. Structured settlement loans also do not contain the same legal protections that are involved in selling structured settlement payments.

Most importantly, selling your structured settlement payments to J.G. Wentworth cannot possibly add to your debt, because all you are doing is selling your future payments outright for cash. There are no monthly payments to make and no late fees or penalties to worry about. So why would you choose to potentially still be in debt via a settlement loan when you could instead choose the option of selling your structured settlement payments outright and putting a lump sum of cash in your pocket? This is, in our opinion, often the better way to get cash now from structured settlement payments.

If you would like to speak to a J.G. Wentworth representative about selling your structured settlement payments for cash now, please give us a call at 877-227-4713.