Johnson Funding and Harrison Funding are offering 3.03% and 3.09% APR loan offers that are simply unrealistic unless you have excellent credit. Crixeo, the popular news and review site, has done a review of Johnson Funding and Harrison Funding and is still waiting to hear from someone who has been approved with an interest rate this low. Or Is it simply part of a long-running bait and switch scam?
According to Ed Miles of Crixeo, “The story is the same. They lure you in by sending you direct mail with a “personalized invitation code” and a low 3.03% APR to consolidate your high-interest credit card debt into a new personal loan. You will be directed to the My Johnson Funding or My Harrison Funding website. More than likely you will not qualify for one of their personal loan offers and they will try and flip you into a more expensive debt product.
It is no doubt that the COVID-19 pandemic has taken a toll on us financially. Millions of Americans have been put out of work, and many local and small businesses have declared bankruptcy as a result of the pandemic.
In uncertain times like these, when you may encounter a job loss or a hospital visit, emergency funds become necessary. However, not many people have emergency funds in place. Due to this, they have to get by through using their short term savings instead.
Though work has begun to resume and public areas have been reopening, many people are far from being financially stable. It may take them years before they feel financially secure again. However, the key to recovering fully from the repercussions of the novel pandemic is to be proactive.
Here are some steps you can start taking if you have been financially hit and want to recover from the impact of COVID-19.
1. Negotiate Your Bills
Not many people know this, but you can easily negotiate your bills with a credit card hardship plan. Think about it. Your creditor would rather have you pay something for your bills rather than nothing at all. For this reason, you can negotiate your balance and monthly payments with your creditors.
Moreover, your creditor may also understand your struggle considering that there is a pandemic going on, and you are not the only one with a financial struggle. You may be at an advantage if you have always paid your bills regularly and on time. If you cannot negotiate your bills yourself, you can take external help using an app or hiring a debt negotiator.
2. Refinance Your Loans
Have you compared debt consolidation vs refinancing? Chances are, your most significant expenses include the loans you have to pay. When times are tough and money is tight, these monthly loan payments can make it more challenging to get by. If you are paying a mortgage, you can talk to your landlord and have them reduce the monthly amount you are supposed to be paying or give you a brief break till you can get back on your feet. This way, you can use the money to pay back substantial debt or other essential expenses.
Refinancing does not just apply to your house loans but also your personal and student loans if you have any. However, negotiating to pay down your student loan may be slightly tricky since they have been provided to you by the government. For this reason, negotiating for personal loans is much easier because they are typically offered to you by personal creditors who are more flexible.
3. Pay Back Credit Card Debt
Perhaps the most financially detrimental form of debt is related to credit cards. This is because credit cards have a high interest which can quickly spiral out of control. Moreover, if your credit utilization is high, then your credit score can be negatively impacted.
One of the ways to pay off your credit card debt is to take out a low-interest personal loan and consolidate the debt. Alternatively, you can consider applying for a balance transfer to another credit card, which has a lower interest. Both of these approaches will reduce the amount of interest you owe.
4. Create a Budget and Stick to It
Budgeting is a great way to save up, take control, and improve your finances. For a few months, you should create a budget based on your income and essential monthly expenses and then stick to it. You may have to stick to this budget for at least six months.
When you make your budget, prioritize your expenses. The money saved from budgeting can then be used to pay off your debt or go towards your emergency fund.
5. Consider a Financial Advisor
If you are struggling to make payments and cannot figure out what exactly to do, it may be wise for you to contact a financial advisor through a nonprofit credit counselling agency. When a professional takes a look at your finances and situation, they will then help provide you with expert advice. However, you might have to pay a fee to the financial advisor. Therefore, you should aim to find one that has free consultation or minimal charges.
6. Rebuild Your Emergency Fund
If there is one thing that this pandemic has taught us, it is that life is entirely unpredictable and uncertain. That is why we should have access to an emergency fund in case we lose our jobs have to fly to a family member’s death, or pay a hospital fee. If you had an emergency fund prior to the pandemic that has depleted over the course of the past few months, then you may have to begin saving up and adding back to the fund.
7. Resume Saving Up for Retirement
You may have stopped saving up and adding contributions to your 401k account or another retirement account for your retirement. However, we would recommend going back to your old habits. If you have returned to your work and can afford to pay the basics, it is time that you begin saving up for your retirement once again. You need to secure your future and no longer cause any harm to it. Compound interest increases over time, so you want to start putting money in your retirement account as soon as possible.
The Bottom Line
Going through a financial crisis due to loss of income, depleted savings, or huge amounts of debt can have a significant impact on your overall financial security. COVID-19 has had a detrimental impact on many American’s health and finances. However, it is never too late to get back up and return to your regular habits.
If you are struggling with handling your finances, do not be afraid to reach out to an expert for advice.
