Firstly, the bearings and cones need to be set in a certain way, otherwise it will grind even worse and the wheel will have to be scrapped. The most common problem is with the little spring loaded ratchets inside the freewheel hub. When the bearings fail, these get snapped off and grind on the bearing races and the hub is ruined.
Unless you know what you're doing, take it to a shop.
Haro's are top brand bikes and depending on how old the bike is, it may still have a warranty. Even if it doesn't fall under a warranty item, (I don't think it will), the shop you bought it from should try to take care of you if they are reputable.
I would also go to other shops in your area to see what prices to fix it will run you. Shop around, one may have an old wheel laying around that they could sell you on the cheap.
Hope this helps.
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