Leveraging debt protection
If you’re considering getting debt protection, take the following talking points into consideration:
- Assess your needs: Evaluate your financial situation, existing insurance coverage, and risk tolerance to determine if debt protection is necessary.
- Shop around: Compare offerings from multiple providers to find the best terms and rates.
- Read the fine print: Carefully review policy details, including coverage limits, exclusions, and claim procedures.
- Consider alternatives: Look into standalone insurance policies (life, disability, etc.) which may offer more comprehensive coverage at better rates.
- Negotiate: If interested in debt protection, try negotiating the terms or price with your lender.
- Regularly review: As your financial situation changes, reassess whether you still need debt protection.
- Use as part of a broader strategy: Combine debt protection with emergency savings and other financial planning tools for comprehensive protection.
Regulations and consumer protections
In many countries, debt protection products are regulated to protect consumers from unfair practices. In the United States, for example, the Consumer Financial Protection Bureau (CFPB) oversees these products. Consumers should be aware of their rights, including:
- The right to refuse debt protection without it affecting loan approval.
- Clear disclosure of terms, costs, and exclusions.
- The ability to cancel coverage and receive a refund of unearned premiums.
The bottom line
Debt protection can be a valuable tool for managing financial risk, but it’s not without its drawbacks. Average consumers can leverage debt protection by carefully assessing their needs, understanding the products available, and comparing them with alternatives. By making informed decisions and integrating debt protection into a broader financial strategy, consumers can enhance their financial security and peace of mind.
Remember, while debt protection can provide a safety net, the best protection against financial hardship is a solid financial plan that includes budgeting, saving, and diversifying income sources. Always consult with financial advisors to determine the best approach for your individual circ*mstances.
There’s always JG Wentworth…
Are you experiencing some financial anxiety over your future and need some peace of mind? JG Wentworth might be able to help. If you have $10,000 or more in unsecured debt, there’s a good chance you’ll qualify for our 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.
