For over 20 years, J.G. Wentworth has specialized in offering lump-sum payments of cash for structured settlement or annuity payments, earning a Better Business Bureau rating of A+ in the process. Unfortunately, some of the folks who call our company are deeply in debt, and looking to make their way out of this hole. And while we can’t offer specific financial advice, we would like to list five general tips we believe are immensely important when it comes to prioritizing loan repayments.
1) Make a budget, and stick to it
First and foremost: we strongly recommend that you write down each and every purchase you make, keep the ones that are essential, eliminate the rest… and never stray from your initial budget plans.
2) Pay more than the monthly minimums
When you only repay the monthly minimums on a loan, you are barely getting at the source of your debt, and the large interest charges that are accruing can cause massive damage to your financial health down the road. A better bet, if you are in debt, is to do everything possible to pay a bit more than these monthly minimums so you can ideally get this debt down sooner rather than later.
3) Find the right lending agency or credit card
You need to find a lending agency you can trust and will treat you fairly; when it comes to credit card companies, you need to find one with a good six-month introductory rate and, of course, a follow-up rate that is not exorbitant or have hidden charges that will take you by surprise.
4) Try to avoid using your retirement accounts
When facing debts, it is tempting to use retirement funds to pay them off. Unfortunately there are at least two vital reasons not to do so: first, because cashing out your retirement accounts early may force you to pay massive fees and charges that will take a chunk out of this money, and second, because you will need a solid retirement account in the future, and it is extremely dangerous to eliminate that money as a safety net.
5) Last but certainly not least: Don’t make paying off the loan a priority – make it THE priority!
Here is the cold hard truth: if you truly want to pay your loans back, there is no way around the fact that you will most likely have to cut back on some of your daily expenses. It might be skipping the cup of coffee from a coffee shop every day, it might be taking the bus to work instead of driving, it might be cutting coupons, it might even be moving to a smaller apartment – whatever the expense, small or large, make it happen if eliminating your debt is truly important to you.
We hope these 5 general tips serve you well as you confront – and then conquer – whatever loans are plaguing you. Remember, also, that J.G. Wentworth is always available to structured settlement and annuity recipients looking for cash now in exchange for all or a portion of the value of their future payments. Please call us anytime at 877-227-4713.
Nothing above is meant to provide financial advice. You should meet with appropriate professionals for such services.