Comparing debt cancellation agreements
When considering a debt cancellation agreement, it’s important to compare offerings from different lenders. Key factors to compare include:
- Cost: How much are the fees, and how are they structured (lump sum vs. monthly)?
- Coverage: What specific events are covered, and are there any important exclusions?
- Benefit amount: Is it full or partial debt cancellation?
- Waiting periods: Is there a waiting period before the coverage takes effect?
- Claim process: How straightforward is the process for making a claim?
Making an informed decision
Before agreeing to a debt cancellation agreement, borrowers should:
- Read the fine print: Understand all terms, conditions, and exclusions.
- Consider alternatives: Compare the DCC with other forms of protection like term life or disability insurance.
- Assess personal risk: Evaluate your own risk factors and whether the coverage aligns with your needs.
- Calculate total cost: Understand how the agreement will impact the total cost of your loan.
- Seek advice: Consider consulting with a financial advisor for personalized guidance.
The bottom line
Debt cancellation agreements can provide valuable protection for borrowers, offering peace of mind and financial security in the face of unforeseen circ*mstances. However, they also come with costs and potential limitations that must be carefully considered.
As with any financial product, the key to making a good decision about a debt cancellation agreement lies in thorough research and a clear understanding of your own financial situation and needs. By carefully weighing the costs against the potential benefits and considering how a DCC fits into your broader financial plan, you can make an informed choice about whether this type of protection is right for you.
There’s always JG Wentworth…
Whether or not you decide a debt cancellation agreement is in your best financial interest, debt resolution could still be a smart move. If you have $10,000 or more in unsecured debt, there’s a good chance you’ll qualify for the JG Wentworth Debt Relief Program.* Some of our program perks include:
- One monthly program payment
- We negotiate on your behalf
- Average debt resolution in as little as 48-60 months
- 24/7 support
- We only get paid when we settle your debt
If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side?
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
* Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required.
Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment.
JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy.
