Out of town and out of cash

"It's not hard to meet expenses, they're everywhere." – T-shirt quote

Sorry for the spate of volcano stories but this is too good an event to pass up for a preparedness blog. It is rare events like this that test everyone and highlight weaknesses and problems.

A few asides before jumping into the main topic.

1. There is grumbling in Europe about lack of governmental preparedness dealing with stranded passengers and managing transportation alternatives. The train system is great (compared to the US) but overwhelmed now. Each country maintains its own airspace so some nations are flying, others grounded. Five days after the volcano, a Euro-level meeting of Transportation Officials was held to discuss common standards for safe flying.

2. Lot’s of grumbling over the airlines. Most have a terrible track record of handling massive flight cancellations. To improve profitability, airlines now fly fewer planes but each at full or near-full capacity. This leaves them with little space to accommodate stranded passengers.
Europeans stranded in Japan were told by Taiwan's EVA Airways that the earliest flight with openings is May 12 - but only if they are willing to pay an extra 150 euros ($200). Otherwise, they have to wait until June.

3. This problem could continue indefinitely. Eyjafjallajökull may continue erupting for a decade and it has a big brother 15 miles away, under deeper ice, that will cause an even bigger ash cloud if it wakes up.

4. A common element of many disasters is price gouging. A French tourist in Hong Kong reports, "Yesterday, we had a hotel room at 250 euros. At midday, it was 460 euros, and in the evening, the price was 800 euros for a room - we can't pay that." The hotel's general manager replied simply, "We dynamically price much like the airlines do, according to how many rooms we have to sell in the hotel." A British family in Sydney, Australia, had the same problem. Their first night stranded cost 150 Australian dollar ($138); the next day the hotel raised the price of the same room to AU$350 - simply because it could.

Which leads to the main point – having access to emergency money on a vacation or business trip. Don’t be like the family who said, "We're at the end of the holiday so we've spent all our money ... Because that's what you do on holiday."

So what are your options when traveling out of the country?

1. Credit Cards – you will pay a modest currency conversion fee but credit cards are accepted around the world.

2. ATMs – ditto on conversion fee and there may be an “out-of-country” access fee. It helps to have your money in a bank that has a global ATM network. The following banks support the “Global ATM Alliance” of mutually compatible ATM machines: Bank of America, Barclays (England), BNP Paribas (France), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canadian), Wespac (Australia & Pacific), ABSA (South Africa), UkrSibbank (Ukraine), China Construction Bank (China). This group has branches in most countries.

Other international ATM networks include:
PLUS (allows Visa card cash withdrawals in over 200 countries.)
Cirrus (allows MasterCard cash withdrawals) Call (800) 424-7787 for locations in 210 countries.

3. Before using your Credit Card or ATM card overseas, call your bank first to warn them that you are traveling. Otherwise they may freeze your card for suspicious activity. Also write down the phone number for calling your Credit Card company in case your card is stolen overseas. Keep this number in a safe place.

4. Travelers checks – I have not used these in years. Now I find that credit cards and ATMs are easier than obtaining and then cashing travelers checks. Often the fees are lower too. Still it might not hurt to have a few $100 available just-in-case the global ATM system or credit card system breaks down due to attack or severed undersea phone/Internet cable. Also American Express Traveler Checks can be replaced if stolen – you’ll need to store the check numbers in a different place (or with a friend) so you can make a claim.

5. Commonwealth Bank of Australia offers Travel Money Cards that work like debit cards but in preloaded foreign currency. I assume other banks have something similar.

6. It's best to use a combination of money sources: a small amount of cash, a debit card, two credit cards (in case one is declined or stolen!) and some travelers checks. Some travelers swear by the ‘two wallet' technique. Keep all your documents and credit cards safely in one wallet, and then use an everyday old wallet for cash and a few less important cards. If you get mugged, just hand over the second wallet to minimize your loss.

7. Before going to a foreign country, I like to convert some money (say $100) in advance. This way if I need cash immediately (like for an airport Taxi) I’m not dependent solely on the moneychangers at the airport and their fees. Ask your bank if they can get you foreign currency (and at what rate.)

Bottom Line

In a few places above I mention storing important contact information in case you are robbed or your luggage lost/stolen. You many lose your purse, wallet or suitcase. So what’s left – a tattoo? One option is the Internet – if you can get free (or cheap) access to it. You could Google for your credit card company number, or American Embassy location, etc. Before the trip you could email yourself the list of Travel Check numbers, your passport number, and other vital numbers and leave this in your in-box. Be careful opening your email overseas. An Internet café or wifi could have someone snooping on Internet traffic or have a keystroke recorder on the PC to copy your account name and password. As a backup I’d email this same info to a trusted friend or relative that you could call.

Resources

Volcano flight chaos leaves many passengers broke

ATMs Abroad

Accessing Your Money Overseas

International Money Transfers

Disaster Myths

The first of April, some do say
Is set apart for All Fool's Day;
But why the people call it so
Nor I, nor they themselves, do know,
But on this day are people sent
On purpose for pure merriment.
- Anonymous

In honor of April Fool’s Day I’ve searched the Internet for Emergency Preparedness Myths.

MYTH: “Disasters are Random Killers”FACT: A disaster is more likely to kill the poor living in substandard housing and the uninformed. Think about earthquakes and cheap apartment buildings that collapse. – Pan American Health Organization

MYTH: “If something happens all I have to do is call 911.”
FACT: “Security, like charity, begins at home and the responsibility for your family’s safety rests on your shoulders.” – Paul Purcell, security analyst and preparedness consultant

MYTH: “All I need is a 72-hour kit with a flashlight, first aid kit, some food and water and a radio to hear further instruction.”FACT: A more practical goal is to be self-sufficient for a minimum of one week.

MYTH: I don’t need to prepare because when “big one” hits, I’m dead anyway
FACT: “Mass Destruction” does NOT mean “Total Destruction.” When the atom bomb was dropped on Hiroshima, Eizo Nomura survived in a basement just 100m from ground zero. Akiko Takakura survived 300m from the blast center inside a solidly built bank.

MYTH: I don’t need to prepare because nothing like that could ever happen here.FACT: Each part of the world has its own unique disaster potential. I wrote earlier about a preparedness specialist in the Chicago suburbs who know he was unlikely to ever experience earthquakes, hurricanes, tornadoes, etc. Imagine his surprise when ordered to evacuate his home by the police because an abandoned train car had caught fire and potentially deadly fumes were drifting through his neighborhood.

MYTH: “Food shortages are inevitable after every disaster”
FACT: Food is usually available but frequently not accessible. (Hence the need for family supplies until roads are clear.) The real shortage after most disasters is clean drinking water. - Jean Luc Poncelet, MD

MYTH: “I received money for another disaster or from another agency or I make too much money, so there’s no point in applying for aid”
FACT: Every disaster is considered separately. And while FEMA will not duplicate insurance benefits, you may be eligible for help with losses not covered or with damages in excess of your coverage ("under-insured"). Most federal and state disaster assistance programs are available to ALL who suffered damages regardless of your income. - FEMA

MYTH: “I gave my information to a local emergency manager (or the Red Cross) so FEMA already has my case details.”
FACT: To be eligible for federal and state disaster assistance, you must apply online at http://www.disasterassistance.gov/ or by calling 1-800-621-FEMA (3362) (TTY 1-800-462-7585).

MYTH: “When a foreign disaster occurs, send ASAP every available volunteer (especially doctors) and send supplies of everything as quickly as possible.”
FACT: “The myth that the affected local population is helplessly waiting for the Western world to save it is also false, especially in countries with a large – but unevenly distributed – medical population. In fact, only a handful of survivors owe their lives to foreign teams. Most survivors owe their lives to neighbors and local authorities.” - Dr. Claude de Ville de Goyet. Unplanned and unorganized humanitarian aid supplies can be useless and clog distribution sites from receiving supplies that are critical. It is best to ASK what is needed before leaping to conclusions.

MYTH: “Life will be back to normal in a few weeks”FACT: Long after the media cameras have moved onto the next big story, people will be rebuilding homes and local infrastructure. “The greatest need for assistance appears several weeks and months after the event. It takes several years to rebuild a badly damaged area.” - Pan American Health Organization

BOTTOM LINE
I recommend reading the articles behind the links above. There’s a lot to learn about what to do for your family and what NOT to do when helping others.