Buzz
Facing a natural disaster, be it a hurricane, flood, or wildfire, is already challenging enough. Once you’ve completed the necessary preparations like filling sandbags or getting ready to evacuate, don’t forget to make sure your bills are paid promptly.
Whether you're someone who meticulously sticks to a budget or you often find yourself struggling with managing finances, an unforeseen emergency can easily disrupt your ability to handle regular tasks like money management.
Financial institutions, including banks and credit card companies, are aware of these difficulties. For example, Apple Card users in Houston impacted by flooding due to tropical storm Imelda received an email about a Disaster Relief Program, as shared by MacRumors.
The program allowed customers to skip a payment without facing delinquency reports and reduced their interest rate to zero for two months. Users were encouraged to reach out to Apple Card support for enrollment.
Be cautious with such offers, as disaster scams are unfortunately common. However, financial institutions frequently offer grace periods for customers in disaster-stricken areas. These can include fee waivers, deferred payments, expedited card replacements, or even emergency credit line increases, according to Matt Schulz, chief industry analyst at CompareCards.com.
“There’s certainly an element of public relations involved,” Schulz remarked. “But from a business perspective, it’s also a good move to keep your customers satisfied.” He noted that actions like waiving fees or extending payment deadlines in a specific area generally don’t affect a bank’s financial performance significantly, yet they help build customer loyalty and retention.
Don’t wait for your bank to offer help
If your bank hasn’t contacted you and you anticipate an unavoidable natural disaster, Schulz advises calling your bank as soon as you can. Even if your payment record isn't flawless, it's worth inquiring about potential grace periods. Waiting until after the disaster hits could leave you unable to reach the bank if phone or internet service is disrupted.
“Whether it's a disaster or you're working out rates or fees, even during normal times, you often have more leverage with your credit card issuer than you might think,” Schulz explained. With banks and credit card companies vying for your business, the chances are high that your financial institution will offer some accommodations to keep you satisfied as a customer.
No matter where you live, it's wise to have a financial emergency plan in place. Keeping copies of cards and documents—stored securely and kept dry—can make recovery much easier. “It can save you a lot of frustration if you plan ahead instead of waiting until after the disaster,” Schulz advised.
