My understanding was that the evacuees would receive $2,000 from FEMA, not Red Cross. They thought the debit card system would expedite the process, but have since decided that depositing money directly into bank accounts would halt most of the fraud that they could see would grow out of control. Of course, I would imagine that many of the people either left their checkbooks behind or didn't have an account to begin with. I'm sure there is a better explanation out there, but I do not think the Red Cross has ever handed out monies to victims, maybe to volunteers though.
In college, I took a course which discussed the very issue surrounding this handbag purchase. We all see it everyday...with clothing, cellphones, jewelry and cars. It's called a value stretch....individuals spend what money they have on those things that will enable them to "look" like they live the good life. They don't put much value on things such as housing, education, insurance and the like. When they are out in the nice car, wearing cool clothes and talking on their cellphones, no one "knows" the real life they have.