Financial Aftermath of California Fires Leave Many Struggling to Recover and Unsure About Their Future

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Financial losses from wildfires coupled with the loss of fire insurance coverage pose long-term challenges for California residents.

FORT LAUDERDALE, Fla., Jan. 23, 2025 /PRNewswire/ -- The devastating impact of the California wildfires has left many families dealing with homelessness and profound financial stress. Millions in Los Angeles and surrounding areas are grappling with the costs of recovery amid cancellations of fire insurance policies, lost wages due to the loss of r employers' businesses, and unexpected bills.

Consolidated Credit, a nonprofit organization, is urging people to take steps to protect their financial well-being in the aftermath of these catastrophic wildfires.

"Natural disasters are one of those unexpected life events that can derail even the best-laid financial plans," says Gary Herman, President of Consolidated Credit. "Particularly with events like these, people may face property damage and increased credit card debt from emergency spending. We want to ensure that people have access to the resources they need to recover. We also want to help those facing challenges with credit card debt to regain stability as quickly as possible."

Widespread loss of homes from the fires, smoke, and water-damaged property, and the loss of businesses, creates a ripple effect of lost wages and financial hardship across the Los Angeles area.

Consolidated Credit is offering free budget and debt-related counseling services and guidance during this stressful and challenging time. California residents impacted by the wildfires can reach out for free counseling at 1-844-331-7534. Certified counselors are available to help Angelenos create a recovery plan and avoid falling into deeper financial trouble caused by excessive debt.

Consolidated Credit offers the following tips for those struggling to recover financially after the wildfires:

• Address High-Interest Debt first: If you have high-interest credit card balances, consider transferring them to a card with a lower interest rate and focus on paying down the balance by covering at least the minimum payment plus the interest and any new spending each month.
• Explore Debt Management Programs: Plans may be able to consolidate your debts into one low monthly payment, reduce or eliminate interest charges. Paying down debts this way should also preserve your credit score.
• If You Lost Your Job, Seek Assistance: California residents impacted by job loss due to the wildfires can file for Disaster Unemployment Assistance (DUA) through the Employment Development Department (EDD) by calling 1-833-998-2284 or 1-800-300-5616.
• Start a Personal Wildfire Fund: Once the wildfires are under control, start putting aside a small amount, such as $20 per pay period. By next year, you could have a solid emergency fund of over $1,000.

For more information on how to rebuild your finances after the wildfires, visit https://www.consolidatedcredit.org/financial-news/consolidated-credit-helps-california-wildfire-survivors-recover-financially/ or call the free counseling hotline at 1-844-331-7534.

About: Consolidated Credit is a non-profit organization, which has helped more than 10 million people overcome debt and financial challenges in 30 years. Their mission is to assist families throughout the United States to end financial crises and solve money management issues through education and counseling.

SOURCE Consolidated Credit