Category Archives: Debt

Harrison Funding Reviews & Frequently Asked Questions

Credit cards can get you into trouble, Harrison Funding can get you out

Credit. It seems like a nice thing – until it isn’t. You start off using your credit cards to build credit and buy things you need or want, but then something happens. You start spending frivolously, make a big-ticket purchase, or run into trouble with your finances, and things go downhill. Payments are missed, late fees and penalties are applied, and the account is out of control before long. Short of filing bankruptcy, companies like Harrison Funding are there to provide financial relief. 

Debt Consolidation with Harrison Funding

Harrison Funding

What is Harrison Funding? It’s a debt consolidation firm that assists interested parties in “refinancing” their credit card accounts. The team of financial experts has helped several people get their debt under control. Their services allow clients to save money, improve their credit, and develop healthy financial habits that get debts paid off faster. 

Debt Consolidation: What Is It? 

The debt consolidation meaning is relatively simple. It is the concept of lumping several high-interest, high-balance credit cards into one monthly payment with lower interest rates. Depending on your financial status, credit rating, income, and personal preference, there are several ways to consolidate or reduce your credit card debt. 

Balance transfer cards are credit cards offered to qualified individuals with a 0% APR for a duration of 12 to 18 months. You can transfer balances from high-interest credit cards to the new one. This concept allows you to save money on interest and pay more towards your principal balance. If you don’t have good credit or can’t repay the balances within the promotional period, balance transfer cards may not be ideal. 

Home equity loans or borrowing from your retirement accounts is another way to consolidate debt. You’d receive a large sum of money to pay off your credit cards. Though this option does seem like the fastest way to get your balances back to zero, it is not the best method for everyone. Should you stop making payments on your home equity or retirement loan, you could lose your house or incur significant tax penalties and fees. 

Another option is to apply for a debt consolidation loan. These are low-interest loans that cover the balance of your high-interest credit card accounts, giving you a more structured way of repaying your financial obligations. If you read reviews on Harrison Funding, you’ll see that this option works for individuals who are having a hard time managing their debt alone. 

Is Debt Consolidation Even Important? 

Debt consolidation is essential to an individual’s financial and emotional well-being. Allowing credit card balances to accumulate for years has several consequences. Consumers who don’t get their debts under control have a poor credit history, cannot apply for credit or loans, and run the risk of being sued, having their wages garnished, and personal effects repossessed. Essentially, restructuring your debt allows you to avoid these adverse outcomes and repay financial obligations when other tips to pay off debt aren’t as effective. 

What Are The Benefits of Debt Consolidation? 

Why is debt consolidation something you should consider? The benefits are straightforward:

  • Save money on interest rates.
  • Manage debt payments easier (with one monthly payment)
  • Pay off your debt faster by eliminating high-interest and paying more towards the principal balance. 
  • Relieve the emotional overwhelm of juggling too much debt
Rebuilding your credit through Harrison Funding debt consolidation

Does Debt Consolidation Affect Your Credit? 

The road to rebuilding your credit can take time. Depending on the type of debt consolidation strategy you choose and your ability to keep up with payments, it can have a negative or positive impact on your credit rating. 

Applying for a balance transfer card, line of credit, personal, retirement, or home loan will require lenders to place a hard inquiry on your credit report to determine your eligibility. This can cause your credit score to drop temporarily. 

Balance transfer cards are ideal for those with good credit, but you must be mindful of your debt to income ratio. By transferring all of your balances to one card, the amount available for use is reduced significantly. Consequently, your credit score will drop until you get the utilization rate under 30 percent. 

Settling your accounts either through negotiations or by working with a debt management agency can also have an impact on your credit score. Since you’re not paying the balance in full, it will reflect negatively on credit reports. 

On a positive note, if you stay committed to your payment arrangements and repay the loan or credit card in full, each of these methods can positively impact your credit. 

Why Consider Harrison Funding? 

With so many debt consolidation firms out there, you may be wondering why Harrison Funding is the best choice. As you can see from reading Harrison Funding reviews, the agency is willing to go the extra mile when other financial institutions aren’t. Their agents are skilled in credit card debt consolidation and will use this to get you the most affordable option available to get your life back on track. 

Applying For Debt Consolidation With Harrison Funding

Are you interested in learning how to apply for Harrison Funding today? Simply visit the company website and complete a short form. You’ll need to have basic information like your credit card balances, payment amounts, and income information to complete the application. After carefully reviewing your information, a representative will reach out to get more specific. Based on what the agent learns, they will provide you with options to consolidate your credit card debt. You select the option that is most affordable for your financial circumstances. 

Many people have found themselves in a jam that led to the mismanagement of their credit card payments. While strategies like paying more than the minimum, cutting back on spending, earning more money, and negotiating with creditors can work to resolve the matter, sometimes it isn’t enough. Applying for Harrison Funding may be the best solution to dig you out of trouble in those instances. As long as you’re a responsible borrower and make timely payments, you’ll eliminate credit card debt, improve your credit, and put yourself on the path to financial freedom.

-$114,000 Net Worth: Creating a Plan to Get Out of Debt

creating a plan to get out of debtA friend of mine, “Doug,” came to me last week asking for some financial advice. He lives in New York City, has a stable job at a fortune 500 company paying $60,000/year, and we have very similar educational backgrounds. Except that he has $117,000 in student loan debt, $1,300 in credit card debt (maxed out the credit card and is paying 13.99% APR), and a 5 year old $4,000 debt that is in collections. Oh, and -$23 in his checking account!

It sounds a bit crazy, but that’s exactly why Doug came to me asking for some help. He’s exhausted all resources and while his parents have helped him get by, this actually may be holding him back from getting his finance in order rather than helping. In asking for my help, he agreed to (and actually recommended) using this on the site as a project.

Where His Money Goes

I took a quick look at his Mint account to get a good snapshot of where his money is going. The first step is taking inventory and finding out what’s happening now; later we’ll look at how to improve. His rent is $1,000/month, which is fairy reasonable for where he lives in Manhattan. And Doug iss smart enough to have a couple of roommates. But he has a lot of “random” expenses like cab rides and travel that significantly takes up his hard-earned money. He’s a mid-20s guy living it up in New York and hasn’t taken the time to get his financial life in order. But hopefully that will change soon.

Critiquing His Spending

The thing that stuck out most to me was that Doug spent $748 at restaurants, $185 on groceries, and another $106 on fast food. That’s $1,039 spent on food alone (not including alcohol and bars)! For reference, Lauren and I spend about $700/month on food, with about $100 of that being spent at restaurants). None of this is included in the $480 of cash/uncategorized transactions in the month. Finally, there are $51 in ATM fees/finance charges that could be simply avoided. That’s not preventing him from being in a good financial position, but it’s indicative of his general ideas about money: do what I want now and I’ll figure the rest out later.

spending too much on food

Creating A Plan

After getting over my initial shock, we discussed a plan going forward. The immediate need was to pay off the credit card bill to avoid the high interest and build a cushion in his checking account. Then we’d tackle the collections account and start some more future planning. How would we achieve this? We’d make just a couple of tweaks that would have a tremendous effect on his finances.

First, Doug agreed to eat out at most once a day. Previously, he was eating 2 meals out every day. And when you’re ordering $12 Chipotle multiple times a day, it makes it really hard to get by and save. Instead of $1,000+ a month, we reduced his monthly food budget to $500, which is completely doable and I’ve already seen him put the changes into practice.

Next, we reduced his 401(k) combined Roth and traditional contributions from 15% of his salary to 4%, enough to get the 2% match at his company. And that drop in contribution leads to over $550/month in after-tax earnings that he’ll be able to use to tackle his debt in the short-term.

One thing I made him do was call his bank and request that his recent $35 insufficient funds fee be credited back to his account. He told them it was a one-time thing, and they removed the fee for him. That was a very easy win, and it showed him that while it will take a significant amount of time to get into positive net worth territory, the immediate changes he was going to put into effect would have a positive impact.

Future Financial Plans

Looking down the road, once the immediate needs are taken care of (we project the credit card will be paid off in October), we’ll look to settle the collections account. And of course, pay down the student loans. It will certainly take time, but the interest rates on those loans are fairly low, in the 3-5% range.

This plan is not foolproof. Doug must be serious about changing his lifestyle and seriously cut back on his spending. He can’t continue to spend on taxi cabs, eating out daily, and unnecessary fees. The good news is that he is young enough that time is on his side and he won’t be saddled by debt forever if he gets his act together. It will be an interesting journey, and hopefully your encouragement will help give him the motivation to stay on track and turn his situation into one of having just about nothing to one where he is in control of his financial future.

Would You Gain 25 Pounds To Get Rid Of Your Debt?

Appearances matter, but how important are they to you?

If you were given the opportunity to get rid of all your debt but have to gain 25 pounds, would you take it? Or would you keep your current debt and stay the same weight?

A recent study by Credit Karma showed that 72% of respondents would rather keep their current debt than gain 25 pounds and be completely debt free.

That may sound like a high percentage to some people, but let’s break this down a little more:

  • In almost all cases, we earned the debt. It seems like cheating to get rid of all the debt, so maybe there is some guilt involved with getting rid of it all at once.
  • 25 pounds is a lot of weight. It can be pretty life-changing and it happening all at once can be a lot to deal with.
  • Nobody sees your debt balance but everyone sees your weight.
  • We have no idea how much debt the people who were polled are in. Maybe it’s not that much?

Lauren and I have about $50,000 in student loans left. While I would love to get rid of it, would I be willing to gain 25 pounds to get rid of it? I don’t think so. That would change my life in a few ways:

  • I wouldn’t be able to run as fast and that would affect my performance while playing basketball, something I really enjoy doing. Straight up, I would be worse
  • I’d never look good in anything I wore and would have to get a completely new wardrobe.
  • My wife would definitely be less attracted to me.

If I could lose the weight quickly, then yes, I’d be inclined to do it. But I don’t think that I deserve to have the debt forgiven, even if I have to pay the price of added weight. The reality I live with isn’t so bad now, so why change it? The risk of changing my way of life might be worse than the debt we currently have.

I posed this question to Lauren, who is smarter than I am, and this is how she responded:

Of course I would gain the 25 pounds to get rid of the debt. Then I’d hire a personal trainer to lose the weight.

While this isn’t a perfect study and isn’t representative of Americans (it was an online study that wasn’t truly random), it does provide an inside look to how many people think.

If you were given the choice, what would you do?

Information for individuals with large amounts of student loan debt: http://www.simpletuition.com/student-loan-consolidation/