A natural disaster can create liabilities for life. As seen in the past few months, western Canada (particularly British Columbia and Alberta) has witnessed some deadly forest fires rendering several people homeless and financially unstable.
Therefore, it is indispensable to have a contingency plan in place in order to safeguard your assets and sustenance, in general, especially, if you live in a region prone to natural hazards. Browse through some of these steps to prepare yourself for any calamity, before and after.
Retain Your Documents
Procure your personal documents either by storing them in a secure and dry place or uploading them to the cloud with password protection.
Always keep a copy of your annual credit report. This will help you show lenders/landlords your credit scenario prior to the disaster in order for them to make some exceptions. Moreover, you can be certain of all your debts and obligations being cleared off.
Have An Emergency Savings Plan
Saving up before a probable natural disaster is crucial as you will be prepared to deal with its consequences when you are helpless. Chipping in at least your 90 days’ income should be your goal. However, if you find it difficult, you should set aside whatever you can each month and on a steady growth.
Get Cash In Handy
When you are saving money for adverse times, make sure to keep some in the form of cash. At the time of a natural calamity, you may not have ATMs working or merchants accepting debit/credit cards. Therefore, using your cash reserve for an emergency is a good idea.
Scan Through Your Property
Setting up a list of all the valuables should be your priority. Photograph every nook and cranny of your house so you know where lies what as you want to demonstrate your losses accurately to your insurance company if your house gets damaged. You can also use apps like ikeepm.com to create an online home inventory which can be useful in managing your assets and filing a claim if needed.
Be Smartly Insured
Emphasizing insurance, make sure your policy covers all the possible disasters in your area. As you would inventory your belongings, create a separate file marking off every value that is covered.
Inform Your Creditors
Every creditor has disaster regulations laid out beforehand. During the time of crisis, be certain to call your creditors and intimate them on your situation. They may issue you waivers, let you skip some payments and in some cases, provide you with financial assistance.
Come Up With A Budget
Save every penny you can when you are going through a disaster until it has completely receded. Cut down on any extra spending and keep track of money flow at every step. Setting up a unique budget for a catastrophe will ease your suffering and allow you to move back to your regular lifestyle once everything is normalized.
Jot down every conversation you have with your creditors and utility organizations. Fabricate a narrative that describes the impact the natural disaster had on you and your financial health so you can add the same to your credit report.
Be Open To Assistance
Many government-funded organizations have special offerings for disaster-stricken individuals but you need to be enrolled in them. Also, don’t miss out on any assistance programs that your insurance company have in store for you.
Combating natural occurrences is not a child’s play. With them, not only come to the financial hardships but also poor credit. If you have braved any such misadventure, please call 1-855-550-5565 to talk to a credit specialist who can help you re-establish good credit and pecuniary security.