In the wake of a natural disaster or hurricane like those that recently ravaged the South, many individuals and families find themselves facing unimaginable challenges. The chaos and destruction have disrupted lives in profound ways: Homes are damaged or destroyed, and immediate needs for shelter, food and clothing are the priority.
As communities grapple with the immediate devastation, the road to recovery can feel overwhelming. While basic necessities certainly take precedence, when possible, it’s important for hurricane victims to consider potential impacts to their financial health and identity that may not initially be top of mind to avoid additional stress or financial losses.
If you’ve been impacted by a hurricane or other natural disaster, here are three tips to protect your financial health as you begin to recover:
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Safeguard your identity
Natural disasters aside, instances of identity theft are increasing drastically.
Hurricane victims may find important documents that include valuable personal information scattered or lost completely, and after a natural disaster, it’s common for criminals to try to steal personal information or money through identity theft and disaster-related financial schemes.
It’s important to be wary of scammers and take proactive steps to protect your identity after a hurricane, including taking advantage of free credit monitoring and fraud alerts. If you notice anything suspicious, report it immediately to your bank or financial institution. If your personal information has been compromised, you may also consider freezing your credit file with each of the three credit reporting agencies to prevent any new fraudulent credit applications.
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Contact your lenders
In times of crisis, including natural disasters, many financial institutions are willing to work with affected consumers. If you were impacted by a storm and are worried you may be unable to pay your bills on time, reach out to your mortgage, auto loan and credit card companies as soon as possible.
Your lenders can report accounts as deferred or in forbearance for a specified period if you live in an area impacted by a natural disaster. While the account is deferred or in forbearance, no late payments will be reported, helping you focus on other important issues. However, interest might continue to accrue. Be sure to ask your lenders about account deferment or forbearance if you are affected and make sure you understand the terms of the agreement.
Understandably, tracking down the contact information for each of your lenders may seem like an overwhelming task at a time like this, but your credit report can be a helpful starting point. You can find contact information and documentation for all your lenders included in your credit report, which you can access for free at www.annualcreditreport.com or via the Experian website.
Avoid purchasing flood-damaged goods and vehicles
In the months and years following significant storms, there is a high likelihood that flood-damaged goods and vehicles will be back on the market. Be mindful of your purchases. There are also tools available to help consumers avoid buying flood-damaged vehicles by checking vehicle history reports. That said, it’s always recommended that you have the vehicle inspected by a licensed mechanic before purchase.
Recovering from a hurricane or other natural disaster is a deeply challenging journey that requires strength, resilience and support. Understandably, if you’ve been impacted by a natural disaster, protecting your credit may be one of the last things on your mind. However, a lack of knowledge could damage your financial health at a time when you need access to credit the most.
By prioritizing identity protection, credit monitoring and communication with lenders and being cautious about purchases, you can take meaningful steps to protect and restore your financial health. While the path ahead may be difficult, these actions can help pave the way toward recovery and stability.
Related Content
- How to Save Financial Documents and Information in Case of a Storm
- Look Out for Scams and Price Gouging Amid Hurricanes, Officials Warn
- ‘Storm Chaser’ Scammers Are Targeting Natural Disaster Victims
Disclaimer
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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