Killer Tips To Rebuild Your Credit Following Bankruptcies

First, know that debits are not “deductions” and credits are not “increases”. Debit and credit are the names of the columns on bookkeeping ledgers (debit is the column on the left and credit is the column on the right). In double entry accounting (bookkeeping) the sum of each column must equal the other. In other words, the sum of all of the debits must equal the sum of all of the credits. By making sure that the sum of each column equals the other, the bookkeeper can eliminate arithmetic errors.

If profit increases the value, it will increase the equity of the company, right? And we already know that means a credit to the equity. Since profit comes from having more income than expense, incomes must be samkey and expenses must be debits. Spend cash to buy pens; debit supplies expense and credit the asset cash. Bill a customer; debit A/R, credit Income.

Sometimes credits earned on previous degree programs don’t exactly match current programs you want to enroll on and few, if any, electives are allowed.

If profit increases the value, it will increase the equity of the company, right? And we already know that means a credit to the equity. Since profit comes from having more income than expense, incomes must be credits and expenses must be debits. Spend cash to buy pens; debit supplies expense and credit the asset cash. Bill a customer; debit A/R, credit Income.

Make sure you know what deal you are really getting. Ask the credit card company to clarify the introductory rebate rate vs. the normal rebate rate. They may tout a great rate without indicating it is only temporary. Meanwhile cards issued by the oil companies may require you to buy gas from them to get the big discount.

Debt is classified as secured and unsecured debt. Secured debt has an asset underlying the debt. If the debtor fails to pay up the creditor can take charge of the asset and discharge the debt. Unsecured debt does not have any asset to back up. In case of failure to pay back the debt, the creditors can not get it discharged without bankruptcy. Thus in unsecured debt the creditors take a bigger risk.

Also, find a way to reduce your interest on the cards that you do wish to keep. A simple conversation with the card company may be enough to help you achieve this. If you have been a good customer the company will no doubt help you make the right credit decisions. And then you can always cut your monthly the down by using your debit cards rather than the credit cards. It is good to use the credit card only when your debit limit is not enough for the purchase you wish to make.

Following the same routine with each customer each month is a good way to ensure proper payment. If you have several employees in charge of the collection process, make sure they all know how to collect your account receivables. Have them follow the same system. Doing so will make your company appear more uniform and put together to the other companies.