Hawkeye Associates wants you to believe that they are offering loans with an APR as low as 3.02%. They started flooding the market with debt consolidation and credit card relief offers. The problem is, the terms and conditions are confusing, if not suspect, to say the least. Do you really think you will be 3.02% approved?
The interest rates are so low that you will need to have near perfect credit to be approved for any of the Hawkeye Associates Debt Consolidation the loans.
Crixeo, the personal finance review site, conducted a Hawkeye Associates review, Dale loan, Credit 9, Yellowhammer Associates, Simple Path Financial, Big Apple Associates, Cornhusker Advisors, Tripoint Lending, Badger Advisors, Rockville Advisors, Snowbird Partners, Gulf Street Advisors, Brice Capital, Johnson Funding, Taft Financial, Polo Funding, Jackson Funding, Dune Ventures, Braidwood Capital, Tiffany Funding, Nickel Advisors , Coral Funding, Neon Funding, Polk Partners, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates and Pine Advisors, etc.).
As the COVID-19 pandemic continues to rock economies, hardly anyone has reverted to their average spending and saving habits. Everyone is wondering what will come next and how to plan their finances in these uncertain times. The particular question arises: should you pay off your debt now or put it on hold until the recession subsides?
Paying off debt, such as credit card debt, during a recession would be a good idea if you have to pay high interest. In these cases, paying off the debt on time with full monthly payments can help you save money in the longer run. However, it all ultimately depends on your financial health, spending habits, and current income.
In such uncertain times, there are a few factors that you need to consider before deciding on your next step. This article will highlight what these considerations are.
Assess your financial situation
It is essential that you carefully assess your current financial situation. It is likely that due to the pandemic and recession, your expenses and income have changed. For example, even if you don’t spend on travel or eating out, you might be living on a lower salary. You should therefore modify your expenses accordingly.
After that, we recommend that you update your budget or create a new one if you haven’t already. Decide on your ideal spending amount, your overall income, and the bare essentials that you absolutely have to pay for each month. The goal is to ultimately determine how much extra money you can save, which you can use to increase your savings or pay off debt.
Should I save my money or use it to pay off my debt?
When you don’t have a lot of savings in your bank account, it may be a good idea to build up your emergency or savings fund before you pay off your debts. Ideally, your savings should include enough funds to allow you to go at least six months without income. However, as you build up your savings, make sure you are paying at least the minimum amount of your credit card debt to avoid late fees.
If you think your job is secure enough, you can do it by paying off all of your credit card debt without having to set up your emergency savings account. However, this can be a significant risk. If you are unsure of your professional situation, it would be wise to start saving. Overall, it depends on what works for your specific circumstances and what works for you.
When to pay off credit card debt
After assessing your current financial situation and having a secure job and significant savings, you can consider paying off all of your credit card debt. You can use the debt snowball method or start paying off the debt with the highest interest first. This will allow you to improve your credit score, erase your debts and live more stress-free.
In many ways, paying off your debt in such a situation could be beneficial. Since your credit score will likely have improved, you will have many options for borrowing. You can turn to them during this time of recession when you are potentially facing dire financial straits.
How to pay off credit card debt
On the other hand, if you are not in such a safe position and cannot easily pay off your credit card debt, you may want to consider other methods. There are certain strategies you can use to pay off your credit card debt. These include a balance transfer credit card or a balance transfer loan.
1. Balance transfer credit card
This includes transferring all of your balance to a specific credit card. It would be best to know if the card you are transferring your balance to offers an Annual Percentage Rate (APR) of 0%. This APR period lasts between nine and eighteen months. If you pay off all of your debt during this time, you can save a significant amount of interest that you would otherwise have to pay.
However, you will need to pay a balance transfer fee, and standard rates will apply once the APR period has been lifted.
2. Personal loan with balance transfer
If you need more than eighteen months to pay off all of your debt, you may want to consider a personal loan with balance transfer. It involves consolidating all of your credit card debt with a loan and paying it off all at once. Then you will make a fixed monthly amount to pay off the loan that you used for your credit card debt.
This method can help you save a lot of money that you might have had to pay in the form of interest or late fees. Moreover, it can also increase your credit score. However, you will need a good credit score to begin with in order to qualify for this type of loan.
What if I’m having trouble making minimum payments?
The strategies mentioned above may seem in vain if you’re struggling to make even your minimum payments with your utility bills and credit cards. In such a case, it would be best to contact your creditors and let them know before they charge you fees for the missing payments. In this crisis, several credit card companies waived fees, offered financial assistance, or lowered the interest rate.
Moreover, you can also contact a credit counseling agency to help you decide on your next step or if you need the financial help of a third party. They offer their services for free or for a small fee and negotiate with your creditors to make your monthly payments more affordable.
The bottom line
Figuring out what your next strategy should be during a recession can be a daunting task, especially when uncertainty is at an all-time high. Since everyone’s financial situation is different, it is essential for you to assess your current financial situation and income.
Decide if you can build up your savings or pay off all of your debt. If you’re having trouble deciding what to do, you can always contact a credit counseling agency or chat with your creditors.