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.
The current situation of our world, with the COVID-19 pandemic raging on, has had a devastating effect on the financial conditions of millions of Americans across the country. Many of us have been forced with reduced hours at work or even fired due to lack of ability for the company to pay salaries. Without having our usual income by the end of each month (or the start of the next month), it can be quite challenging to cover our credit card bills. This issue has become rampant across the United States.
To help out the people suffering during these times and offer some support, card issuers have been coming up with new options for credit cardholders. One of these options is the chance for credit holders to put their payments into forbearance.
Moreover, the CARE Act has also worked hard to provide some ease to people. They are offering protection to those consumers whose lenders have offered credit card relief. This is done by asking the credit card issuers (or lenders) to report those accounts as ‘current’ to large-scale credit reporting firms, even if the borrowers already have payment accommodation services.
On the other hand, some credit borrowers have their current payment holidays ending soon. Others are struggling with a relief program that isn’t quite helpful enough to manage their finances. If you’re one of these credit borrowers who have found that their credit card relief program isn’t sufficient, here are four further options you can consider for extra support.
1. Balance Transfer Credit Cards
A balance transfer credit card offers borrowers the option of enjoying lowered interest rates and reduced monthly payments on their type of debt. This is done without having to renegotiate an agreement with your current lenders, so you won’t need to worry about damaging your current credit score.
These credit cards come with a low promotional rate of 0% for a certain period of time. You can easily transfer all credit balance from your pre-existing credit cards to this new card at the promotional rate. This means your monthly repayments will be significantly reduced, especially if you have gotten a substantially low APR. Moreover, you are now required to make just one payment per month instead of stressing over several credit bills from different cards.
2. Debt Consolidation Plans
Debt consolidation plans require you to take out a personal loan to consolidate and pay off all your current debt and easily make monthly repayments to cover the loan. Since these personal loans often come at lowered interest rates and flexibility in the terms of your repayment plan, you can easily opt for a monthly solution that would best suit your financial conditions.
If you are successful in qualifying for a low interest personal loan, you can easily use it to pay off one, or even all, of your credit cards or other loans. You will be left with just one new loan to pay off, instead of several different debts, and it will be at a much more affordable rate – thus saving you money in the long run.
Lastly, when you take out a debt consolidation personal loan, the lender will tell you precisely when the loan will be paid off and the total amount you’ll be repaying beforehand. This allows you to weigh out your options with all the cards on the table before making a final decision that would work out best for you.
Although debt consolidation functions quite like a debt management plan, you won’t need to work with a credit counseling firm for it. This saves up the fees you would have had to pay the firm. It also won’t damage your credit score, just as long as you repay the loan on time.
3. Credit Card Hardship Plans
Quite a few credit issuers offer a credit card hardship plan. It allows borrowers to benefit from a modified repayment plan in case they are unable to make their current payments every month.
People who enroll in a credit card hardship program have to abide by the specific terms of a new payment plan that are decided upon with their credit card issuers. The issuers mostly have the right to make the final decision regarding whether to approve or deny your entry into the program. The program may also include your fees written-off or temporarily low interest rates.
Usually, with a credit card hardship plan, you will still be required to make monthly payments, but they will be significantly reduced. You should remember that these changes to your credit card’s terms are temporary, though, and the normal interest rates will resume once the time period for the hardship program ends.
4. Debt Management Plans
Generally administered by credit counseling agencies, a debt management plan will require you to pay a fee before you’re allowed to participate.
The process of benefitting from a debt management plan involves bringing together different kinds of debts that you owe various lenders. This will result in you having to pay only one fixed repayment each month. Your credit counseling firm might even take extra steps to negotiate terms with your current creditors for reduced interest rates, eliminating any late fees and extra over-the-limit charges. All of this comes together to reduce the amount you need to pay back to your current creditors, which you will do using the loan from the counseling firm.
Unfortunately, this practice can damage your credit score if you aren’t careful. Also, the fee charged by these counseling agencies is an added expense on your already struggling financial condition.
The Final Takeaway
Debt management, when done right, can be quite useful. It brings together your loans and debts, paying them off without the constant stress of calculating expenses and keeping track of multiple bills at the month’s end. But, if you’re facing a short-term financial setback, it is better to opt for a credit card hardship program to get you through. It will help you maintain your monetary conditions and allow you to resume your regular payment plan once you’re in a more stable position.