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Financial Steps to Take After a Disaster

Recent world events have left many of us in shock. After the shock wore off, some people started to panic, and that's the worst thing to do to yourself and your finances, experts say.

The Federal Reserve Board reassured the nation shortly after the terrorist attacks on Sept. 11 that more cash would be placed into the nation's system, if necessary. The board proved this by adding $38.25 billion from temporary reserves to the U.S. banking system to keep liquidity strong, as reported in Bankrate.com.

But, is your money safe? Yes. The nation’s credit unions are open and operating normally. So don’t run to an ATM (automated teller machine) and withdraw large amounts of cash. If you planned to close on a house or to refinance, do it. If you need a car, buy it.

Some things to do with your money:

• Keep cash in your accounts. You’ll place yourself at more risk--from theft, fire, or anything else that can go wrong--by withdrawing and holding large sums of cash.
• Pay your bills promptly. With airline service disrupted after the attacks, the mail system has slowed down, so allow extra time for payments to get to their destination;
• Keep detailed records of your payments and contact the payee if your bill will be a little late this month;
• Consider contacting your credit card issuer, mortgage company, and other business to make sure they received your payments;
• Consider paying your bills online [Editor’s note: If your credit union offers this service, explain your services here]; and
• Watch out for scams. Stay away from “disaster deals” -- they don’t exist. Be more careful about safeguarding your personal financial information.