Tuesday, December 6, 2011

Expert Advice To Tackle Credit During Disasters

There is something unnatural about the air. Probably, it is the hurricanes and earthquakes on East Cost, Blackout in Southern California and Wildfire in Texas that are the prime reasons for most people freaking out! This is the main reason that people are seeking guidance on how to prepare for credit and finance to avoid any financial mess after the disaster.

After carefully scrutinizing the archives and talking to experts, this article lists the things you should prepare in advance before the emergency strikes and things to do after the crises.

Things to do before the disaster strikes:

1. Lay a strong foundation: You need not be dramatic like digging up the backyard or buying room in a luxurious hotel. There are more simple and practical ways. Just follow these instructions:
  • Look after the basic carefully: It is best to pay the debts well in time and try to build up the cash reserves. This should be your regular habit in even normal times. Remember in spite of volcano or hurricane or earthquake your utility bills and credit card bills are sure to come your way. Even Jean Chatzky advocates this in her Debt Diet Challenge. She strongly recommends that even small savings can be of great use in time of emergency. Savings acts as a cushion against incurring debts. Credit.com's credit card expert, Beverly Harzog suggests that it is advisable to spend less than your credit card limit so that you can use it in time of emergency. As it might not be possible to access ATM always.
  • Get the insurance: To many, insurance seems to be a burden. But remember that in times of disasters it comes up as the biggest help. Ensure that your car, house, office, apartment are insured so that in times of emergencies insurance companies pay for them.
  • Keep a number of copies: Many credit experts also advocates the habit of maintaining photocopies of all important social and financial documents. Maintain careful records of information like credit card name, number, toll-free number, automatic withdrawal details, bank account number, insurance policies, mortgage or lease papers, auto loan details. Keep the details in well sealed plastic folder. In case the need arises of evacuating the house, you can just pick the folder and run away.

2. Maintain calm and use your brains during the crises: If you are well prepared and focused during crises, it helps you tackle the situation well. Here are things you must do to keep the situation under control:

  • Pay cash: Using credit cards in times of emergency doesn't do any good. It just compounds the crisis as then you are supposed to pay the interests amount too. Therefore, it is best to pay cash if needed.
  • Pay the bills well in time: To avoid pending bills it is very important to make timely payments. Make a call to the credit card companies or utility companies and ask for the dues and make the payment well in time. During the time of crises you can easily make payments over the phone for a small fee.
  • Get in touch with the bank: All credit card companies are in close association with the banks and monitor each transaction very carefully. If during emergency, you are to make a big transaction, it is very important to inform the bank to avoid cancellation of the transaction.

  • Carefully log off the accounts: Credit experts also suggests that if you use computers at coffee shop, libraries or cafe, it is important to log off your accounts before you leave the computer.

3. Be prompt and quick: Disaster hits a wider area and therefore, it is important to start the recovery process as fast as possible. The simple reason being, like you, there are several others who are hit by natural calamities. Read below to find more about how to use your insurance cover after an emergency:

  • Make a list of all your possessions to make the claim process simpler. To back up the support it is best to take assistance of private appraiser.
  • File for the claim as soon as possible as the insurance companies resolves the claims on first-come-first basis.
  • Maintain good records. Keep a description of the interaction between you and the insurer in the written form.
  • Keep the receipts- hotel bills, restaurant bills and others handy to support the claims. This is help you in speedy reimbursements.

These tips are sure to help you tackle the emergency situations without much of inconvenience and when you have everything intact, your free credit scores are also not very likely to be affected even after the disaster. So, be sure that you stay as much vigilant as possible, even in dire circumstances.


cheap life insurance quotes said...

This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.

corporate insurance said...

I also advise to copy in a safe place all important documents. Always have documents ready for any kind of situation. thank you for having so well summarized what is necessary to do.