WASHINGTON, May 26, 2004 . . . National Oceanic and Atmospheric Administration (NOAA) forecasters are telling Atlantic Coast and Gulf states to be prepared for an active hurricane season, which starts June 1. However, residents everywhere—from earthquake-prone California to Tornado Alley in the Midwest—are well advised to have plans in place to protect against the damage of natural disasters that can occur where they live.

"The top priorities during and after a natural disaster are safety and access to food, water and secure shelter," said Susie Irvine, president and CEO of the American Financial Services Association Education Foundation (AFSAEF). "Once danger is past and they are able to think about other things, people should know what to do to take care of themselves financially."

That's the intent of AFSAEF's consumer guide, "When Natural Disaster Strikes." Among other things, the guide has a section on help available to those unable to make payments on loans or other credit obligations in the aftermath of a natural disaster. Depending upon the situation, many creditors may allow borrowers to skip a monthly payment (and still be considered current), offer payment deferrals and reduced loan rates, extend office hours, set up temporary locations or attempt to contact customers by telephone to provide assistance.

The guide also recommends that consumers prepare themselves by taking these actions:

• Compile a central list of all financial obligations. Be sure to record the names of financial institutions and account numbers (the AFSAEF pamphlet contains a "Financial Obligations Worksheet" for this purpose).
• Review insurance policies and update them, if necessary, to ensure current assets and credit obligations will be adequately covered. Call your insurance company to determine the extent of coverage to your house and belongings in the event of flood damage.
• Set aside emergency funds in a type of account that allows for easy, uncomplicated withdrawal, such as a checking or savings account
• Back up computer files containing financial information. Keep all important records (including the computer backup disks, insurance documents and financial obligations list) in a secure location unlikely to be damaged during a natural disaster.

Once a natural disaster occurs and safety is ensured:

• Take the time to find a reputable contractor and lender. While you'll be eager to have a destroyed home or property repaired or replaced, and for life to return to normal, resist the temptation to rush into things.
• Contact your creditors to discuss payment alternatives on any mortgage, loan and credit card obligations.
• Check your credit report through one of the three major credit bureaus (Experian, Equifax or Trans Union) to ensure relief arrangements made with your creditors were reported correctly and that no fraudulent activity appears on your report. Disasters can cause important papers, with personal and confidential account information, to become misplaced and perhaps fall into the wrong hands.

"When Natural Disaster Strikes" is posted on the AFSA Education Foundation's Web site (www.afsaef.org). Consumers may also obtain a free copy of the pamphlet by sending a self-addressed, stamped envelope to the AFSA Education Foundation at 919 18th Street, NW, Department ND, Washington, DC 20006-5503.

Founded in 1990, AFSAEF develops consumer education materials and sponsors research on consumer finance issues. It is affiliated with the American Financial Services Association, a national trade association for market-funded financial services firms providing credit to consumers and small businesses.

Other resources: Federal Emergency Management Agency, National Hurricane Center, American Red Cross.