Hi there.  J.G. Wentworth here. 

Over the years, I’ve been approached many times by individuals wanting to know if they could buy, as an investment, the structured settlement payment streams we buy from our customers. 

Though it would be quite easy for us to sell the stream of payments we buy to any number of individuals, I have always politely but firmly said “no”. 

This is anything but a flip answer.  In the 20 years since we created a market for structured settlement payments, I’ve had plenty of time to consider this question.  Early on, I reached the conclusion that structured settlement payment streams were not appropriate for individual investors.  Time has only increased my conviction. 

Conceptually, structured settlement payment streams are simple.  In reality, these so called “cash flows” are quite complex, and present risks that I feel are difficult for individual investors to fully appreciate.

Testimony to these complexities and risks is aptly demonstrated by the tremendous effort on our part to make bonds backed by structured settlements appropriate even for institutional investors. 

First we must buy payment streams where our right to receive the payments is indisputable.  For instance, outstanding tax liens and child support obligations against the seller could interfere with our rights to receive future payments we’ve purchased.  We must find out about these things before we put out a lot of money to buy payments. 

Next, we must offer the bonds in layers – I believe the word on Wall Street is “tranches” – where we hold onto the first layer.  That’s because in the event there are any losses in the pool of structured payments, they are absorbed first by the “tranche” that is owned by J.G. Wentworth.  Another way to say this is we have to eat our own cooking!

Finally, once we create the bonds backed by structured settlement payments, we engage a third party, a bond rating agency like Moody’s, to review and rate the bond offering.  This helps sophisticated institutional investors further assess the creditworthiness of the bonds. 

Mind you, this is what we do to make the bonds appropriate for sophisticated institutional investors.  I can’t imagine what else we would have to do to even asses whether they could be made appropriate for individuals. 

The question of risk and complexity aside, we’re simply not in the business of selling investments or insurance products to individuals.  It doesn’t matter which label you use, insurance or investments, the fact is, these industries are regulated for a reason- to protect consumers. 

Don’t get me wrong.  I like to help people with their finances.  That’s why we started this business in the first place.  But the assistance we offer is focused on helping folks get back on their feet to pay off bills, buy a car to get to work, get the medical attention they need, or buy the house they want. 

So if someone approaches you with an investment “opportunity” in structured settlements, the first thought that comes to mind is “If it sounds too good to be true, it probably is.” 

Hi everyone.  J.G. Wentworth here. 

There’s a feeling of nostalgia in the air as we’ve launched Three Story Opera, a new commercial that harks back to our troupe of singing Vikings.  (If’ you’ve never seen this commercial, click here.)

The original Opera has quite a catchy tune, even though it’s in a commercial about, of all things, structured settlements, and it’s sung in opera.  But we’ve gotten reports from all over the country about people who have gotten song in their head and can’t get it back out again. 

It’s only natural then, that we would begin Three Story Opera with someone singing in the shower, “I have a structured settlement but I need cash now . . .” Unfortunately, our singer is so engrossed in the song, he doesn’t know that his basement is flooded and that general mayhem is breaking out in his neighborhood.  From accidents, to dogs on the loose and a choir of quintuplets, it’s all on display in Three Story Opera. 

Of course, when something is happening in your life that requires cash, you probably know about it right away.  As one of the leading structured settlement companies, that’s why we act quickly to get you cash for structured settlement payments as fast as the law allows. 

So the next time something happens and you need cash, don’t just sing about it.  Do something smart.  Call J.G. Wentworth at 1-877–CASH-NOW. 

Hi everybody.  J.G. Wentworth here.  If anyone ever deserved a settlement, it was surely our customer Paul B out in South Bend Indiana.  Driving the winding roads of farm country near his home, Paul had a head on accident with a dairy truck.  Paul’s injuries were severe, and his career as a bricklayer ended as a result of the accident.

Paul won a settlement with a lump sum and regular payments.  For a long time things were just fine, until he had a second head on collision, this time with unexpected medical expenses.  That’s when Paul called us. 

Paul’s financial situation was delicate.  His wife went to work, while he stayed home with the kids.  Between her salary, and his regular payments they were able to get by.  So when buying Paul’s payments, we had to keep this in mind. 

Ultimately, we designed a program where we bought just a little of each of Paul’s regular payments.  Because he was receiving payments for the rest of his life, we were able to buy payments well into the future.

For Paul, this worked.  He got a lump sum to pay his medical bills, and he got to keep most of his regular payment from the insurance company.  We were happy to help Paul and his family.  And we can help you too.  Give us a call some time and find out how we can put you on the road to financial freedom. 

Hi everybody.  J.G. Wentworth here. 

You know we’re coming up on out 20^th year in the business.  That’s a long time.  But, do you want to know the question I’ve heard most over the years?:  ‘Mr. Wentworth, is selling some or all of my structured settlement payments a good idea or not?’

It’s not really a black and white answer.  There are pros and cons. 

Here are some of the pros: 

·         There are, generally speaking, no costs associated with selling your structured settlement payments. 

·         Similarly, the sale of structured settlement payments is considered to be a tax-free transaction. 

·         When you sell structured settlement payments you do not go into debt. 

·         When you sell structured settlement payments, the discount rate is often much lower than other forms of financing, particularly credit cards.

·         When you sell structured settlement payments, you can structure the sale so that you can continue receiving some of your regular payment stream. 

Of course, the pros must be balanced against some cons, namely: 

·         Selling structured settlement payments takes time.  Our sales representatives advise our customers that the process can take four to six weeks, sometime longer due to special circumstances. 

·         Selling structured settlement payments will reduce the amount of income you get from your regular payments from the insurance company.

·         You need to keep your guard up.  There are some unscrupulous firms out there that don’t always have your best interests in mind.  

Everyone’s circumstances are different.  The best thing I can recommend is to learn as much as you can about the process and your own financial needs, and then call us to talk over your options with a trained account representative.  If you like what you hear, that’s a good indication that selling your structured settlement payments may be the right transaction for you!

Hi everyone.  J.G. Wentworth here. 

Chances are when you need cash you need it fast.  There are plenty of places you can go, but they’re all different in terms of how quickly you can get the money you need, and the terms you can get it on.  I’ve covered many of these sources of cash right here on my blog.  Some of them include: credit cards, your 401(k), bank loans, friends and family and even rent-to-own stores.

One we haven’t covered so far is selling your stock market investments such as stocks, bonds and mutual funds.  So, here goes . . .

Positives: 

·         Generally, when you sell stocks, bonds and mutual funds, you can access your money within a very short period of time, sometimes in as little as three days or less. 

·         You can sell these kinds of assets quite easily, generally with a single telephone call, or very quickly on a computer.

·         There are very few costs associated with selling stocks, bonds and mutual funds.  Commissions at many brokerage firms are now less than $10.00.

·         When you sell stocks, bonds and mutual funds, you can sell very precise amounts that exactly match the amount of cash you need.

·         The sale you make to raise the cash you need might be far less than the amount of money you have made on your investment, especially if it has grown over time. 

Negatives:

·         Many people do not own stocks, bonds or mutual funds. 

·         If you sell investments at a profit there are very likely tax consequences from the sale that ultimately will decrease the amount of cash you use. 

·         If your investments are growing, selling some or all of them will reduce the amount of money you could make by simply holding onto them.

·         If your stocks, bonds or mutual funds are inside of an IRA, and you sell them to use the cash, you could face penalties for taking out money earlier than specified by law.

·         If you own several stocks, bonds and mutual funds, deciding which one to sell can be difficult.   

Compared to Selling Structured Settlement Payments

The interesting thing about stocks, bonds and mutual funds compared to structured settlement payments is they are both assets owned by you.  Though they are very different assets, using them to raise cash keeps you from going further into debt.  That aside, what are the differences? 

·         When you sell structured settlement payments, you are not taking away the possibility of missing out on the future growth of stocks, bonds and mutual funds.

·         When you sell structured settlement payments, there are generally no tax consequences.  The amount of payments you sell is the amount of cash available for you to use. 

·         If you are just starting out, the value of your investments might be very small in comparison to the present value of your structured settlement payments.  

Overall, I think if you can afford to sell structured settlement payments – that is, you can afford to part with some or all of your regular payments – selling them might be a better way to go.  The value of investments grow over time, while that value of structured settlement payments tend to diminish over time.  If however, you need cash this week, and you have investments in the market, selling some or all of them may be your only choice. 

*This blog post is not a recommendation for a specific course of action.  Consult with your tax or financial advisor first.

Hi everyone.  J.G. Wentworth here. 

In a number of my recent posts, I’ve covered lots of places you can go to get money and compared these sources to structured settlements.  So far we’ve covered things like credit cards, your 401(k), bank loans, friends and family and even rent-to-own stores.   Pretty exhaustive, but we’re not done yet.  Let’s not forget home equity loans.

With a home equity loan, you can tap into the value of your home that, hopefully has built up over time.  Let’s say your mortgage is $85,000 and your home is worth $150,000.  The equity you have in your home is what it’s worth versus what you owe on it, or in this case, $65,000 ($150,000 value - $85,000 mortgage = $65,000 in home equity).

Positives: 

·         Rates for home equity loans are lower than most other forms of financing.

·         Getting and paying off your home equity loan may strengthen your credit score.    

·         Many banks, including the bank that wrote your original mortgage, will consider a home equity loan. 

·         Home equity loans are relatively straightforward to apply for. 

Negatives:

·         If you don’t own your home, you cannot get a home equity loan. 

·         Having a home equity loan outstanding may negatively affect your credit score, especially if you miss or are late on payments. 

·         A home equity loan creates a debt that must be paid back in full with regular, fixed payments.   

·         Some banks may limit the ways in which you can use the proceeds of your home equity loan.  For instance, you may not be able to use it to start a business. 

·         The bank that gives a home equity loan to you will have a lien on your home. 

Compared to Selling Structured Settlement Payments

Even if you could get a home equity loan, selling structured settlement payments might be a better option.  Here’s why: 

·         There are no limitations to how you can use your structured settlement proceeds. 

·         When you sell payments, you are selling an asset and therefore, you are not creating a debt that you have to pay back.

·         When you sell structured settlement payments, you maintain control over the number of lenders with a financial interest in your home. 

Of course these factors must be balanced against your need for income.  If you need all of your income from your structured settlement, cannot afford to sell any payments, and you own a home, getting a home equity loan may be a good option for you to consider.   

Twitter: http://twitter.com/jgwentworth
YouTube Channel: http://www.youtube.com/user/jgwentworth
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Hi everyone.  J.G. Wentworth here. 

When you need money, there are lots of places you can turn to:  friends and family, credit cards, your 401(k).   Ultimately, it seems though that despite the number of places you can turn to, getting the actual funds you need is always quite challenging. Banks represent a good example of this phenomenon.  In some towns, it seems like there’s a bank on every corner.  But the questions are: can you actually get funds from them, and if you can, should you? 

Positives: 

·         Banks are easy to find and they are in business to make loans to people. 

·         Banks have lots of money, compared to say friends and family, or versus the limit on your credit card.

·         Interest rates on bank loans are typically lower than many other sources of funding. 

Negatives:

·         The application process for a bank loan can be complicated and sometimes it takes a long time for a bank to make a decision on your loan application. 

·         If you get a bank loan, you will need to collateralize (i.e. back-up) the loan with your own personal assets such as your house, car, jewelry and investments.  The bank does this so that if you are unable pay them back, they can take these assets and sell them to recover their money.  So, not only are your personal assets at risk with a bank loan, but also, you cannot borrow money in excess of what your assets total. 

·         A bank loan creates a debt that must be paid back in full with regular, fixed payments.   

·         If you need a loan to start a business or help your existing business, the bank will consider your request as a business loan.  Typically the minimum amounts for business loans are much higher than the amounts people may want to borrow. 

Compared to Selling Structured Settlement Payments

Even if you could get a bank loan, selling structured settlement payments might be a better option.  Here’s why: 

·         You don’t need any collateral to sell some or all of your structured settlement payments.

·         The sale of structured settlement payments provides you with cash for personal use, or to help you with your business goals and objectives. 

·         Since you are not creating future payment obligations when you sell structured settlement payments like you are when you take out a bank loan, there are no regular interest and principal payments to make.   

Getting a loan and establishing a relationship with a bank can be helpful to your finances down the road, whether you need more money, or want to take advantage of other services they offer.  If you need all of the cash from your regular structured settlement payments and cannot afford to sell any, getting a bank loan might be the best way to go.  However, if your budget allows for selling some payments for a lump sum now, you can avoid going into debt, which is a significant advantage over a traditional bank loan. 

Twitter: http://twitter.com/jgwentworth
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Hi everyone.  J.G. Wentworth here. 

When you need money, there are several options.  Some of these include getting a bank loan, using credit cards, borrowing from your 401(k) plan and so forth.  In this blog entry, I’m going to compare structured settlement funding to buying products through rent to own retailers.  Rent to own retailers offer consumers low weekly rental prices on home furnishings and electronics, and ultimately, ownership of the products they rent.  

Positives: 

·         Buying through a rent to own retailer is quick.

·         Buying through a rent to own retailer does not require a credit check. 

·         You can purchase items at a rent to own retailer even if your credit is impaired.

Negatives:

·         A rent to own store might not have what you need. Typically, these types of retailers have a lot of home furnishings and electronics. If you need to refurnish your home after a fire, great! If you need construction materials for home improvement, or need to hire a contractor for home improvements, or need to pay tuition, or buy a car, the easy credit offered by rent to own stores will not be helpful to you. 

·         The financing costs associated with rent to own payment plans can be prohibitive. According to the Consumers League of New Jersey, a non profit, consumer advocacy group formed in 1900, effective interest rates can be more than 250%. Typically, they say, a rent to own store will double the cost of goods sold on credit.  Then they will charge interest during the life of the payments, in addition to other fees for insurance, application, delivery and late payments.

Compared to Selling Structured Settlement Payments

Even if you could get what you need at a rent to own retailer, selling structured settlement payments might be a better option.  Here’s why: 

·         The discount rates associated with selling structured settlement payments is much, much lower than the financing costs of most rent to own retailers.  In fact, the discount rate on the sale of structured settlements is now below the interest rates charged by most credit card companies.

·         The sale of structured settlement payments provides you with cash, which you can spend anywhere you like on anything you need. 

·         Since you are not creating future payment obligations when you sell structured settlement payments, there are no regular interest and principal payments to make.   

·         When you sell structured settlement payments, the relationship between buyer and seller is clearly spelled out and approved by a judge.

·         There are generally no tax implications when you sell structured settlement payments, whereas when you buy products through rent to own retailers you will likely pay sales tax. 

A rent to own retailer can get you some of the things you need delivered to your home in a very short period of time.  Maybe even tomorrow.  And because of this, you can enjoy what you need much more quickly.  However the financing costs are much, much higher with rent to own retailers, and if you are short on funds to begin with, spending it on unnecessary interest costs may not be the wisest course of action.

Twitter: http://twitter.com/jgwentworth
YouTube Channel: http://www.youtube.com/user/jgwentworth
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Hi everyone.  J.G. Wentworth here. 

When you need money, there are several options.  Some of these include getting a bank loan, using credit cards, borrowing from your 401(k) plan and so forth.  In this blog entry, I’m going to compare structured settlement funding to getting a loan from friends and family.

Positives: 

·         Friends and family can be a quick source of funds. 

·         Generally no credit check required. 

·         Terms may be advantageous due to relationship between borrower and lender. 

Negatives:

·         The loan could result in permanent damage to the relationship.  This can happen on both sides of the transaction.   If the borrower fails to repay the loan, or the lender fails to come through with the money, the personal relationship between the two can be permanently damaged. 

·         Asking for a loan from friends and family can cause awkwardness.  Your would be lender may want to help you out, but due to financial circumstances you are unaware of, cannot.  This can cause them to feel embarrassment, or annoyance at having to explain their own financial circumstances to you.

·         Structuring a loan can be difficult.  Asking for a loan is one thing.  Knowing how to put one together is another.  There are tax implications for the borrower and/or the lender if the rate charged is below prevailing interest rates.   

Compared to Selling Structured Settlement Payments

If you need cash and you own a structured settlement, selling some or all of your payments may be a better option. Here’s why: 

·         When you sell structured settlement payments you do not create additional debt.  While a loan from friends and family is generally not recorded anywhere, debt is still debt, and needs to be paid off. 

·         Since you are not creating debt when you sell structured settlement payments, there are no regular interest and principal payments to make.   

·         When you sell structured settlement payments, the relationship between buyer and seller is clearly spelled out and approved by a judge.

·         There are generally no tax implications when you sell structured settlement payments. 

A loan from a friend or family member is likely to be much faster than selling structured settlement payments.  In addition a loan from friends and family may have a lower interest rate.  (I say “may have” a lower rate because lately, the discount rate for selling structured settlement payments has been getting lower and lower.)  Still, many people consider their relationships with their friends and their family invaluable.  If you do too, it might be better to look elsewhere for the cash you need. 

PS:  If you still want to borrow money from a real person, rather than getting it from an institution, check out the many peer-to-peer lending networks on the Internet.   

Twitter: http://twitter.com/jgwentworth
YouTube Channel: http://www.youtube.com/user/jgwentworth
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Hi everyone.  J.G. Wentworth here. 

When you need money, there are several options.  Some of these include getting a bank loan, getting money from friends and family or selling some of your investments, to name a few.  In my next few blog entries I’ll discuss the positives and negatives of different options, and ultimately compare them to selling your structured settlement payments.

Since credit cards are everywhere and almost anybody can get one, I’ll start with them. 

Positives: 

·         Good for a small amount of money, such as a couple of thousand dollars. 

·         Credit cards are quick.  You can usually get access to cash within a short period of time.

·         Credit card balances can be kept current with very small monthly payments.

Negatives:

·         Credit card interest rates in excess of 20% are not uncommon.  Late payment fees can be even more significant.  For instance if you are charged $35 for a $1,000 payment that arrives one day late, converting that figure to an interest rate for what is in effect a one day loan equates to an annual interest rate of more than 1,200%.  If you are one day late paying off a $50 dollar balance and are charged $35, the effective interest rate is more than 25,000% .

·         Credit card agreements are complex and can contain several hidden fees. For instance, the use of average daily balances means you could be charged interest even during a month when you never used the card. Moreover, even if you read and understand the agreement, they are changed frequently.  Committing to read your credit card agreements as they change requires a significant amount of time.  

·         In order to get a credit card, you must give up potentially sensitive personal information to qualify and get the card.  In addition, the credit card company will request a credit report.  The number of credit report requests in any given year has a negative impact on your credit score. 

·         If you make only the minimum monthly payment, it may take years to pay off the balance Your total interest paid could exceed the cost of what you purchased.

Compared to Selling Structured Settlement Payments

If you need more than $10,000, selling structured settlement payments could be better than getting cash from credit card companies.  Here’s why: 

·         When you sell structured settlement payments there are no monthly payments to make. 

·         Currently, the discount rates on the sale of structured settlement payments are often lower than most credit card interest rates. 

·         When you sell structured settlement payments, you do not create additional debt that you must later pay off. 

These are compelling benefits but must be balanced against the fact that selling payments requires you to go to court and generally takes longer and is more difficult than getting cash from a credit card.  Still for larger amounts of money, it may be the best way to go for many folks.

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