Working Through The Financial Impact of Disasters

By GreenPath Financial Wellness

 

We have always been told that we should prepare in case of an emergency, and this year has proved that statement to be more important than ever before. Taking the necessary precautions and properly managing any unforeseen disaster will not only protect yourself and your household, but also help you quickly recover from damaged investments such as a home, automobile, business, etc. There are several ways that you can minimize the financial impact of a current or future disaster.

 

You may ask yourself, where do I even start? One of the very first steps to take is contacting your insurance companies to file a claim. When filing a claim, you will need proof of the damages so don't forget to take photos of all damages and save them in a cloud-based account to ensure safe storage. 

 

Next thing you should do is contact your credit card, mortgages and other creditor companies so they are aware of your current situation. If the disaster, such as a catastrophic weather event, fire, or even an ongoing pandemic, affects your ability to make payments on time, your creditors may waive late fees or even allow a deferred payment. 

 

If you are unable to make some of your payments, be sure to check your credit report, too. This is important because you can write a statement on your report explaining your situation. Although it won't change your score, it's a proactive move that will show future lenders why you had late payments and increase your chances of taking out another loan in the future. 

 

Keep reading about how you can manage the financial impact of current or future disasters. 

 


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