Sane Credit Advise For Your Doomsday - Preparing For Disasters

A wise consumer is always financially prepared to tackle any kind of disaster, be it man made or natural. There are also many who do not know how to prepare for such exigencies. The good news is - with careful planning, you can actually be ready for all the earthquakes, wildfires or blackouts. Given below is a compilation of advice given by financial experts. Read what they have to say about emergencies and financial planning.

Get Rid Of Your Debt - The first advice to all consumers is to begin your preparations before disaster strikes. Be practical and start paying off your debts and saving money. Whatever the disaster is, having cash reserves will keep you safe. But unless you pay off your debts, no amount of planning can help you.

Bills will not stop arriving even if there is a hurricane. So, be prepared to pay them.

Debt Diet Challenge counselor, Jean Chatzky, says that you need not have huge savings. Even if your savings are just a few months’ old, they will come handy during emergency. The combination of being debt-free and having savings to cushion you from all falls gives you the advantage of not incurring any more debts.

One of the most common forms of debts is credit card debt. It is essential that you repay your credit card debts each month and keep the balance much lower than the credit limit. This will be a handy option to use at those times when you have unexpected expenses.

Even if your insurance premium seems like a burden, don’t discontinue it. It may be the only thing to keep you afloat after disaster.

Insure Yourself – Insurance is also a kind of saving. Many people look upon Insurance as a lifelong burden but it comes in handy when disaster strikes. Insure yourself, your house and car. Keeping your car and house insured will help you at a later date, if you ever lose them to disasters. And your life insurance will help your family, if the disaster claims your life.

Be Calm – Keep your cool at all times and focus on the safety. That is of prime importance for yourself and your family. It has been seen many times, that people begin to charge everything to their credit cards in the times of emergency and forget that they will have to repay it later. Keep cash ready to make small payments. If your expenses are too high and you have to use your card, inform the card company and the bank of the emergency and the upcoming expense.

Jean Chatzky stresses on three points that will stand you in good stead on any day – Pay all your bills timely and normally, contact your bank and Sign out. If there is any disaster and you have not received your bills, find out from the various banks and card companies, the amount your owe them and pay the bill. The disrupted services will be restored soon enough and when they are, you can adjust the extra amount paid. Report any excess expenditure to the bank so that they can expect it and not block your purchases. Lastly, if you are logging into your account from a public computer, sign out before you leave the place. These are the three essentials that will keep you safe and secure at all times.

Begin the process of recovery as quickly as possible as credit card companies reimburse claims on a “first come first serve” basis.

When the crisis is over and your life is back to normal, make an inventory of all that your possess and get it appraised. When life gets back to normal, people begin contacting insurance companies to file claims. You must do so quickly and as soon as possible so that the company can consider your claim first. Back up your claim with documents and records. When you correspond with the insurance company, keep a record of all correspondence and interaction. When you have documented proof, your claim will be reimbursed quickly.

Keep photocopies – There is not much point is having insurance and other financial savings if your family and near and dear ones are not aware of them. Making a note of all your financial information and keeping copies of Keep records of even the smallest expense and file a reimbursement claim for it as it is quite possible that you may be reimbursed.important financial papers is essential so that when disaster strikes, you are prepared. Go a step further and note down your credit card details, the payments that you make or have made with the card, details of your bank account, your lease, if any, mortgages, insurance premiums and number, and all the loans that you have availed. Keep copies of the papers in a plastic folder at a reachable place so that when you need them urgently, you can pick them up and move.

Disasters and emergencies are always unexpected and that is the reason why you should always be prepared for them. Procrastinating will not get you the much needed relief.