Sep 21

How the credit crunch is affecting existing credit card customers

You might wonder why or how the credit crunch can continue to affect the everyday finances of people in UK? Don’t forget it’s not just the fact that the cost of living continues to soar; lenders are now putting limits on the level of credit we have available.

Different aspects of the cost of living have increased, even month on month, things like utility bills food resturants and cafes, alcohol and even package holiday costs have increased from April 2008 compared to March 2008. This is because of the rising external costs to the companies operating in these goods and services.

It would also make sense for loan and mortgage lenders to tighten their lending criteria, and we’ve seen that over the first few months of spring lenders have indeed made it more difficult for people to get hold of credit. I think this is a good thing in the light of mortgages and loans including secured loans Something like 60 per cent of people who consolidate their debts with a loan will then use additional loans and other forms of credit to, perhaps, fund a lifestyle they simply cannot afford. It is time for people to wake up and budget within their means.

However, what I do not agree with is the recent 2.5 million or so credit card customers who’ve had restrictions put on their accounts because of the credit crunch! Forgive me for thinking this way but wasn’t it the banks that got us into the credit crunch mess in the first place? If they had not lent money irresponsibly to people who could not afford the repayments this would never have happened?…

Credit card companies have cut spending limits, issued annual fees and even closed some accounts. But what makes this even

Sep 20

Bank Side and Book Side of Reconciliation

Bank Side of the Reconciliation Bank side of the bank reconciliation includes: Deposits in transit (outstanding deposits). You have recorded these deposits, but the bank has not. Add deposits in transit on the bank reconciliation. Outstanding checks. You have recorded these checks, but the bank has not yet paid them. Subtract outstanding checks. Bank errors. Correct all bank errors on the Bank side of the reconciliation. For example, the bank may erroneously subtract from your account a check written by someone else.

Book Side of the Reconciliation Book side of the bank reconciliation includes: Bank collections. Bank collections are cash receipts that the bank has recorded for your account. But you haven t recorded the cash receipt yet. Many businesses have their customers pay directly to their bank. This is called a lock-box system and reduces theft. An example is a bank collecting an account receivable for you. Add bank collections on the bank reconciliation. Electronic funds transfers. The bank may receive or pay cash on your behalf. An EFT may be a cash receipt or a cash payment. Add EFT receipts and subtract EFT payments. Service charge. This cash payment is the banks fee for processing your transactions. Subtract service charges. Interest revenue on your checking account. On certain types of bank accounts, you earn interest if you keep enough cash in your account. The bank statement tells you of this cash receipt. Add interest revenue. Non-sufficient funds (NSF) checks. These are cash receipts from customers for which there are not sufficient funds in the bank to cover the amount. NSF checks (sometimes called hot checks) are treated as cash payments on your bank reconciliation. Subtract NSF checks. The cost of printed checks. This cash payment is handled like a service charge. Subtract this cost.

Journalizing Transactions

Sep 20

Bank Notes

Bank Notes

National Bank Notes make up the most plentiful and extensive series in the history of American paper currency. These notes were issued from 1863 through 1929, and were produced by literally thousands of individual banks through the United States and its territories.

The bank note series is so extensive that almost no collector could ever even hope to own a truly complete collection. Today, the most popular and practical way to collect these notes is to attain one note from each variety, issued by a wide-array of different banks. This will give you a collection with many, many different notes, with different denominations, different designs, artwork, portraits and with the names and locations of many different historic banks.

You could also choose to collect only notes from one specific region, state, city, or even one specific bank. Although, the more specific you become in your search, the more effort it will take, and the more money it will undoubtedly cost.

National Bank Notes came into being by passage of the National Banking Act of 1863, which was later expanded by the Act of June 3, 1864.

These National Bank Notes, although issued by individual banks, are nevertheless conventional United States paper money, meaning they were fully-negotiable, and were printed under the same conditions as regular U.S. Treasury issues by the Bureau of Engraving and Printing; the same source as all of todays U.S.-issue paper currency.

The primary designs of each issue of National Bank Notes are the same for all banks. The only differences are in the name of the issuing bank, the banks charter number (which appears on all bank notes issued after 1875), the bank officers signatures, and the coat of arms for the state in which the bank was located.

The Bank Note Series

Sep 19

Understanding What Cash Flow Is All About

Why It is Important

Knowing what cash flow is and why is it important to understand how it affects a given budget is something that can get confusing. Specifically, when there are periods of unabated spending. When a business unit or an individual begins to create a budget, one of the first things scrutinized is where the money is coming from and secondly how and where their money is spent. Knowing the inflow of cash and the outflow of cash are what makes up the road map, as it were, for seeing the big picture of the financial health of a given situation.

Some may equate spending, cash outflow, to an automobile moving forward at a certain speed, thus accelerating in a direction that can deplete the financial resources faster than expected. Therefore, using this same analogy, if the driver of the vehicle was to apply steady pressure to the brakes of the automobile the velocity of cash outflow would slow to an acceptable level. Not a bad way to look at things, and we all are aware of need to have a visual representation of our financial resources including how and why these resources diminish over time.

Controlling Cash Flow is all about Setting Goals

No one in their right mind ever wants to run low on money or get behind on bills. In the same instance, we all enjoy spending money on things we want. There is nothing wrong with controlled indulgence. The important factor is however, knowing when we can purchase that new set of dishes or take on a new car payment while not over extending or going outside of our budgets. This is where setting financial goals become paramount in creating a lifestyle we can enjoy. In the realm of business, it is all about the ‘bottom line’ or

Sep 19

Transaction Steps Involved In A Credit Card Payment

The complex procedural steps involved in credit card payment are designed to protect the interests of both the client and the issuing bank, which are as follows: product purchase, authorization, safe-keeping and tracking, and fund transfer.

The type of payment using a credit card has already been popular due to two major reasons such as convenience and safety both on the part of the customer and merchant. Cashless shopping is possible without having to worry about thefts. Apart from the previously mentioned reasons, another importance of accepting credit cards is observable when running an online business. This makes shopping feasible even when you are miles away from the actual store location. You are basically opening more doors for potential customers and not just limit to physically present patrons. However, you might be wondering how a simple card can turn into something profitable. Here is a brief explanation as to how transaction takes place, which are as follows:

Product purchase

Purchasing a product can be done either in actual stores or through online transaction. If the client is physically present during the purchase, the card can be swiped on a terminal device, which captures details such as name of cardholder, account number, date of purchase, and amount. However, if the transaction took place online, you just need the account numbers, so that these can be encoded manually.


There is such entity called acquiring back, which refers to the middleman who facilitates the processing through authorization request. The issuing bank verifies the account number, card type, and the available funds of the cardholder. If there are sufficient funds to cover the cost of purchase, an authorization code will be sent back to the processor. Approval is not always feasible especially if issues like insufficient credit limit and history of unpaid monthly

Sep 18

Credit Card Tips And Info That Will Help

When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.

Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.

Be sure to check the activity on your credit card regularly, to make sure that there are no suspicious charges being made on it. If someone has stolen your information and is using your card without your permission, you want to catch this as soon as possible. If you see suspicious activity, contact your credit card company right away.

Learn how to manage your credit card online. Most credit card companies now have online resources where you can oversee your daily credit actions. These resources give you more power than you have ever had before over your credit, including, knowing very quickly, whether your identity has been compromised.

Consider getting a credit card that rounds off your purchases to the nearest dollar. The benefit is, that you plan to pay for the increased purchase amount, and then the interest is mostly covered by the change you already thought was spent. This helps with budgeting, and takes the edge off of interest charges.

An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances.

Sep 16

What is load bank testing

Load banks are often talked about in industrial environments, but many people dont know exactly what they are or what they do. Essentially, a load bank simulates the electrical load that powers a piece of electrical equipment. By mimicking the real load that will be transmitted to a source that powers this equipment, it helps to test its reliability.

As a result, load banks are very important in industrial contexts. Keep reading for further information on load banks and load bank testing.

Uses for load banks

Load banks are often rented and used in a variety of situations. In factories, they are useful for testing generators and turbines. In situations where generators are kept on site but only used in the event of a power outage, they may also be useful for regular testing of these generators to ensure that they will still work when needed.

Load banks may also be used to test other back-up power supplies, like batteries and UPS (Uninterrupted Power Supply) systems. UPS load bank testing is often carried out during preventative maintenance. As well as testing whether or not a UPS system works, load bank testing can also test the condition of batteries within the system in order to ascertain how much life each cell has left.

Other applications of load bank testing include ground power testing, tackling problems caused by wet stacking (often found in diesel engines or generators), getting rid of carbon build-up on piston rings and building gas turbine platforms.

Why is load bank testing important?

Load bank testing is important because it helps to prevent disruption to electrical power services. This is very important in factories, when even a small amount of downtime can represent the loss of a significant amount of money. However, its also crucial for hospitals, which depend

Sep 15

Why Offer a 401(K) Plan – Retirement Planning for Your Business

A 401(k) plan is more than just an employee benefit, but an economic security tool for your business. When employees are equipped with the tools they need to retire in comfort they in turn have disposable income and are far more likely to not only spend it in the local economy, but also be happier in their workplace without the added stress of thinking about retirement and thus be more productive.

Recent polls have found that in over 70% of small companies, employees were not offered a 401(k) plan. Why such a low number? There are perceptions that the plans are hard to administer and costly to start. Some companies may not feel that they, or their employees, would see a large benefit because those who are offered would not want to participate in such a plan.

Why offer a retirement plan? Here are a few reasons for businesses to consider.
Some of the most obvious reasons to offer a 401(k) plan is to not only retain employees, but also attract talent. A 2012 MetLife study has found that retirement benefits are a significant factor in employee loyalty after their salary, and other perks such as health care coverage. With the job market tight for highly skilled workers, having a retirement plan in place is a great way to lure new talent to your company. Small companies should work to provide similar benefits as those offered by larger companies if they want to see their business grow. Retention of employees and keeping a low turnover rate can not only avoid the extra cost of training new workers, but help establish a culture of trust and foster relationships with customers and clients.

Another great benefit of 401(k) plans is that owners can also participate. The plans can also be setup for companies that are

Sep 13

Enhance Your Personal Finance With These Excellent Tips

Save as much money as you can every month. Having a solid amount of savings on hand is very useful in case of any emergencies. It will enable you to avoid taking out loans or suffering great losses, like your car, simply because you could not afford what you needed at that time.

Think about setting up a car pool with people that you work with. If several of you live in the same area, this is a great way to save money on gas. It has the added benefit of possibly improving your relationships with the people that you work with, as well.

When you are ready to open a new checking account, ask the banker to explain the various types of accounts that they offer. Many banks offer free checking and savings accounts, as long as you keep a minimum balance in the account each month. Also, ask about ATM fees. There are often many “hidden” fees that are involved in ATM use.

Do some research about tax deductions. There are many different items you can deduct: Any expense related to your job or business, some medical expenses, expenses linked to education or the profit you made from selling a home, for instance. Keep track of your finances and make sure you save your receipts and bills to do your taxes properly.

Develop a budget and stick to it. Many people approach personal finance without a simple budget plan in hand. How can you succeed with personal finance if you dont have a clue where you are saving money and losing money? Create a list of all your expenses and income and keep track of it monthly.

Stop buying name brand everything. When the money is good and the economy is doing great,

Sep 11

Latest Bank Jobs in India 2013 in India

Every year banking industry in India come up with 500,000 jobs annually and provides secure jobs to over millions of students around the country. Every year, a large number of candidates apply for bank jobs in India such as SBI recruitment, Canara Bank recruitment etc. From clerical posts to probationary offices, bank jobs in India offer plethora of opportunities to candidates all over the India.

These bank jobs offer handsome remuneration and secured jobs in reputed organizations. All these features foster many students to opt for various bank exams. There are tons of coaching centers around the country that prepare students for various bank exams. Students find it better to join coaching institutes to prepare for bank exams 2013.

If you have made up your mind to secure a bank job in a government recognized bank, it is important to do bit of homework and get counseling if possible. Fresh graduates usually are confused about their career. Counseling can help them to choose the right path and move only in one direction.

It is also important while preparing for bank exams 2013, you should not close your eyes to other opportunities. Most of the government exams have same kind of entrance tests. If you fail to get good score in one, you might catch another better opportunity. As competition is increasing, brighter students are participating in bank exams every year to secure Bank Jobs in India. It is important you should better prepare yourself for all similar government jobs. You can get right guidance from different counselors and various websites that provide complete information on government jobs held in India. You just need to sign into such sites to get automatic email notifications for various government job exams held in India. They also provide your complete career

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