Life After Debt Settlement
By working with JG Wentworth, a debt-free life is possible. Our debt specialists determine a debt relief solution program with your finances in mind and our negotiators work with creditors to reduce your overall debt.
What happens when my enrolled debts are settled?
As soon as we receive an acceptable settlement offer from a creditor, we notify you. At the time of notification, we will need your authorization to move forward with the settlement.
Once your enrolled debts are all settled, you’ll receive:
A settlement letter is provided by your creditor and shows the terms of your agreement and payment schedule. Most creditors send these directly to you, but if you are missing a letter, you can request it directly from that creditor. These documents act as proof that your agreed settlement amount has been paid.
Your graduation packet will include an overview of your settlement and savings as well as tips for financial health following the completion of our program.*
Avoid overspending and live within your means. While some circumstances are beyond our control such as paying for medical treatments, it’s best to keep a budget in mind for everyday expenses. Even if you can afford a purchase, consider whether you need it and can afford the overall expense in terms of associated fees and interest and any additional costs.
Now that you’re not budgeting debt payment expenses, you can save money for a retirement account, a savings account, and/or an emergency fund. For instance, if you have funds that you put towards your debt relief program that have been unused, it’s wise to place that directly into a savings account or emergency fund. These accounts can help alleviate the pressure of bills from unforeseen events such as car or home repairs, a major life event such a death in the family, or medical expenses. You can then avoid incurring more debt and plan for your golden years.
There are numerous ways to build your credit after settling your debt. Some of the top methods include:
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Pay on time and in full to avoid sliding back into debt. This will gradually increase your credit score and demonstrate financial responsibility to creditors and lenders. After all, 35% of your credit score is based on your payment history (i.e. how you pay your bills). Consider setting up auto-pay for monthly expenses to avoid missing payment deadlines.
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Check your credit report regularly to ensure it’s accurate. You can receive a free report at AnnualCreditReport.com. This can help you address discrepancies and confirm that settled debt has been removed. If your credit report still reflects paid or settled debt, you can call your creditor or collector to update your file accordingly.
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Apply for new credit, preferably a secured credit card if possible. These cards require you to put down a deposit, which typically serves as your credit card limit. Paying your bills on time can then help to slowly build your credit based on your payment history.
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Become an authorized user on someone else’s account that reflects good credit. Ask them if they’re willing to add you as an authorized user, which can boost your credit score. However, note that your credit activity can affect their score as well.
3 Tips to Remaining Debt Free After Debt Settlement
Getting out of debt takes time, patience, and determination. Once you’ve resolved your enrolled debts, keeping best financial practices in mind will help you remain debt-free so you can focus on future goals such as purchasing your dream home or starting a new business.
How can we help?
Contact JG Wentworth today to find out how we can help you get freedom from our burdensome debt.
*JG Wentworth does not pay or assume any debts or provide legal, financial or tax advice or credit repair services. You should consult with independent professional advisors for such advice or services. Please consult with a bankruptcy attorney for more information on bankruptcy.
JGW Debt Settlement operates in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer in CT, GA, HI, IL, KA, 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.