Harrison Funding is offering 3.03% APR loan offers that are simply unrealistic unless you have excellent credit. Crixeo, the popular news and review site, has done a review of 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 Harrison Funding and unless your credit score is above 700, you will not qualify for one of their personal loan offers and they will try and flip you into a more expensive debt product.
COVID-19 has adversely impacted nearly every country. As everyone copes with these impacts, government officials have taken measures to provide financial support to home business owners who are perhaps financially hit the hardest by the pandemic.
Credit card debt was something countless people were already struggling with prior to the pandemic. Now, with businesses losing customers, many home business owners are struggling to stay afloat as they cannot manage the mounds of credit card debt they are finding themselves in.
You are certainly not alone if you have found yourself in a similar situation. However, luckily, your home business can still stay afloat. Here are some of the options for credit card debt relief during the COVID-19 pandemic that you can consider using if you own a home business.
1. Utilize Your Benefits
Many credit card companies are coronavirus credit relief, like time extensions, specifically to home business owners. You can take advantage of these benefits if you are unable to pay off your credit card debts. Many credit card companies are also offering incentives to accommodate new and existing customers until expenditure patterns return to normal.
2. Hire a Bankruptcy Attorney
Consulting an experienced bankruptcy attorney if you are struggling with COVID-19 pandemic related credit card type of debt does not mean that you must file for bankruptcy. Instead, they might even help you with relevant alternatives you can consider after looking at your business’s full financial picture. With the support of bankruptcy attorneys, you will be able to decide whether you should file for it and which type of bankruptcy to file for.
Some home business owners will find it necessary to file for bankruptcy if they want to restructure their business or are simply unable to pay all of their bills. Some types of bankruptcy let you run your home business while making small payments, while others help a company shut down without having to make too many outstanding legal payments.
3. Increase Your Business Credit Line
Many home business owners rely on enhancing their business credit line to get immediate financing during the pandemic. If you have a good credit score and have made regular and consistent payments, your credit card issuer will likely agree to increase your credit line. As a result, you will immediately receive liquid cash to pay your bills and manage the day to day operations.
However, doing so will have a negative impact on your credit score. Therefore, you should only opt for increasing your credit line if you are in desperate need of immediate financing.
4. Find Out About Waived Fees
When you do not make the minimum payments on your credit card, you will be penalized. However, many credit card issuers have already introduced waived late penalty and APR fees due to the pandemic. This will significantly help you with your financial situation until your spending habits return to normal once the pandemic is over.
Thus, when you search for relief from credit card debts, be sure to ask your credit card issuer about waived fees and whether any fees have been waived. You will likely qualify for some form of waived fee if you have good credit standing and have made regular and full payments in the past.
5. Find Out About Deferred Payments
As the economy struggles to keep up due to the pandemic’s adverse impact, it is essential that you find out about any deferred payments being offered for home business owners. Similar to waived fees, many credit card issuers have also begun offering options to defer, skip or make late payments on your credit card bills. Many of these issuers understand the adverse impact on home businesses that the pandemic has had, which is why they are offering to help through deferred payments.
Therefore, be sure to call your credit card issuer and find out whether they are offering these options and what the timeframe to make payments on card balances, fees, and interest is.
6. Consult a Credit Card Counseling Agency
If you do not want to file for bankruptcy, it would be the right decision to see a nonprofit credit counseling agency. Many have been offering their services to home business owners to navigate their options to improve their financial situation amidst the pandemic. These agencies provide you with a credit counselor who will look at your entire credit history and financial position to give you the best available option for you.
7. Talk to Your Lenders
Consider settling your debt by directly talking to your lenders and the credit card issuer about the debt and its terms. You can negotiate the debt terms, such as an extension of the payment date or reducing the principal amount. Most of them recognize the effects that the pandemic has had on home businesses and might understand your difficult financial situation. Moreover, if you have hired a credit counselor, they might likely help you settle your debt too.
However, you should be aware that there are certain drawbacks to this option. These include increased interest rates and a potential lawsuit from the lenders if you cannot repay even after settling the debt.
8. Look Into Short Term Financing
A loan might be helpful to consolidate your credit card debts and pay them back if you are a home business trying to survive during the pandemic. Doing so will help you pay back all your bills and smoothly run daily operations.
The Bottom Line
These are uncertain and confusing times, which is why being unsure and asking for help are both completely acceptable. You can undoubtedly alleviate your credit card debts even during this pandemic. All you need is a clear and strategic plan that will help you pay off your debts.
Look into contacting your credit card issuers if they offer deferred payments or waived fees, or you are interested in debt settlement. Then, consider hiring a bankruptcy attorney or a credit counselor to guide you.
