The experts at CreditCards.com offer steps to avoid financial crisis during an emergency situation
Recent events in the northeast, including Hurricane Irene and a ground rattling earthquake centered in Virginia, provoked many people to question their preparedness for a natural disaster in more ways than one.
According to CreditCards.com it is important to have access to money or credit cards in the event that an emergency should occur. Experts strongly suggest each household take the following steps prior to the occurrence of unexpected disasters including hurricanes, wildfires, earthquakes, tornadoes or other natural disasters:
1. Keep some cash handy.
Have some emergency cash or travelers checks set aside in a safe, secure place. How much you need depends on your family's circumstances, but a few hundred dollars may be a good start. It should be easily accessible. Remember that banks and ATMs may be inaccessible if there are power outages, curfews or mandatory evacuations. Be careful with that cash, and put it back in the bank once the danger passes, because if it's lost or stolen, your homeowner’s insurance policy will cover only a limited amount.
2. List account numbers, institution phone numbers.
Keep a log of account numbers and toll-free telephone numbers for all of your banks, credit unions and lending institutions for credit cards and mortgage and car loans. You can make photocopies of the front and back of the cards or type up a list and e-mail it to yourself. This information should be kept in a secure but accessible place. The Federal Trade Commission has more tips to help keep financial documents up to date and portable for emergencies.
3. Flood-proof important papers.
Place photocopies of important documents in a plastic bag and double wrap them to protect against water damage. Consider putting them in a safe deposit box.
4. Use cell phone and email as backup record-keepers.
Save the toll-free telephone numbers to your credit card issuers in your cell phone contact list or email the list to yourself in an encrypted, password-protected file. If cards are lost or stolen, you will be able to quickly alert credit card companies. But beware: Cell phones and Internet access may be limited or completely shut down following a disaster. Don't make them your only recourse for retrieving your information.
5. Create a fire-safe records box.
Place important financial documents in a fire-safe box, but keep in mind that if mandatory evacuations are ordered and your neighborhood is inaccessible for any reason, you may not be able to get to the box.
6. Spread the wealth.
Don't give all of the credit cards and checkbooks to one family member. If you are separated for any reason, the other person may be stranded.
7. Set aside emergency-only credit card.
Designate one credit card for emergency use only. It should have enough available credit to accommodate purchases of food and supplies for a week or more. Making purchases on a credit card will help you document disaster-related expenses, which may be reimbursed by your insurance company or other assistance program. If you don't use this card very often, you may want to call the credit card issuer and let them know you will be using the card. Making several large purchases on a card that has been inactive or suddenly making transactions in a location away from your home may trigger a fraud alert and a freeze on the account.
8. Inform card issuers in advance, if possible.
Call the credit card issuers and alert them that you may be inaccessible and give them alternative numbers where you can be reached. Ask about your available credit limit and if you can increase it during the crisis, have late fees and finance charges waived temporarily or work out alternative payment plans.
Ben Woolsey, Director of Marketing and Consumer Research for CreditCards.com, is available to discuss the importance of being financially prepared for an emergency and the steps to achieving it. To arrange an interview with Woolsey, please contact Christie High at 212.871.3020, ext. 114, or email chigh@jgordonassociates.com.
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About Ben Woolsey/CreditCards.com:
Ben Woolsey is Director of Marketing and Consumer Research for CreditCards.com and offers a perspective gained from a 20-year financial services career. Woolsey has been involved in the design of rewards programs and marketing both consumer and business credit cards for several of the nation's largest issuers.
About CreditCards.com:
CreditCards.com, recently named a “Best Site for Managing Your Credit” by MSN Money, is a leading online credit card marketplace, bringing consumers and credit card issuers together. At its free Web site, consumers can compare hundreds of credit card offers from America’s leading issuers and banks and apply securely, online. CreditCards.com is also a destination site for consumers wanting to learn more about credit cards. Offering advice, news, features, statistics and tools, CreditCards.com helps consumers make smart choices about credit cards. In 2010, more than 12 million unique visitors used CreditCards.com to find the right credit card to suit their needs.
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