Following a natural disaster, such as the recent Oklahoma tornados and California wildfires- not to forget Florida’s hurricane season, the last thing you want to think about is whether you have paid your Visa bill.
Putting such tasks on the back burner while you are focusing on more important issues such as temporary housing along with food and water can be devastating to your credit score. Just a few delinquent payments can ruin your credit score when you need access to credit the most.
Here are six ways to ensure that your old debts do not jeopardize your financial future:
1.) Get a copy of your credit report. By having a copy of your credit report before it reflects any financial impact resulting from the disaster, you can later make the case to a lender or someone else checking your credit that the disaster, not financial mismanagement, caused your low credit score. You can get a free credit report each year from each of the three big credit bureaus (Experian, Equifax and TransUnion) from AnnualCreditReport.com
2.) Create a post-disaster budget. While you’re waiting for a check from your insurance company, take a realistic look at your savings and any income that’s coming in. Once you have your post-disaster budget, you will know how much you have left to pay on your credit cards and other debts.
3.) Initiate contact with creditors. Once you know how much money you are working with, it’s time to reach out to your creditors. Sometimes when disasters occur, credit card companies will email their customers to let them know they are aware of the disaster and will waive late fees that month for those who have been affected.
4.) Document all conversations. When contacting your creditors, be prepared to tell them how the disaster affected you, how long you think your ability to pay will be impacted and how much you can afford to put toward your bill. Keep a detailed record of the conversation, knowing who you talked to, what they promised and when the phone call took place.
5.) Explain the disaster’s effects on your credit reports. As you are recovering financially from a disaster, you can add a 100 word statement to your credit report explaining that you experienced a natural disaster and it caused your credit to suffer.
6.) Look for long-term recovery funding. Your insurance policies and government assistance may help you rebuild your home or possibly replace your car, but you may have to seek additional resources to help you pay for other debt obligations, particularly if you lost your job following the natural disaster.
Click here to read more about the six ways you can protect your credit following a natural disaster.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.