US Finance World

Bank account numbers have risen again, the BBA confirms. The popularity of basic-functionality bank accounts continues to increase, figures from the British Bankers’ Association (BBA) have suggested.

New statistics from the industry group show that 107,000 new post office accessible accounts were opened over the second quarter of 2009, bringing the UK total to 7.9m.

Basic-functionality bank accounts are designed for those users who might not qualify for a standard high street current account.

In the past, customers could take out two separate kinds of basic account services.

Some accounts could only be operated through banks, while others were also post office accessible.

However, the BBA said that there had been a “convergence” trend in the sector over recent years.

For example, an agreement with HBOS in 2008 allowed 3.5m basic functionality accounts to be post office accessible for the first time.

The second quarter total for new accounts is around 30,000 lower than that of the first quarter.

David Dooks, BBA statistics director, said that this decline was “not unexpected”.

He added: “This particular customer market has matured in recent years and basic bank accounts are no longer an automatic progression from other accounts, for example those opened for children or by people from overseas working temporarily in the UK.”

Earlier this month, the government confirmed that its target of halving the number of Britons who did not have a bank account had been met.

This total has fallen from 2 million in 2004 to just 900,000. Read more…

Government credit card plans have sparked debate. Read more…

Many people are worried that enrolling in debt consolidation programs will reflect negatively on their overall credit score. In most cases, this fear is purely irrelevant, as consolidation typically serves to improve the overall credit score of those who successfully complete their streamlined repayment plan. The only two ways that consolidation could hurt your credit is if 1) you choose a fraudulent agency that takes your money without repaying your creditors or 2) you fail to make your monthly loan repayments to your agency. If you stay faithful to your end of the bargain and you choose a reputable agency that will provide an honest service for a fair price, you should have nothing to fear in terms of a negative effect on your credit score.

Research

The best way to select a debt consolidation service that will not hurt your credit is to take the necessary time to sift through the wolves in sheep’s clothing and find the good guys in the bunch. S

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A blast from the past is making a comeback this holiday season and retailers are hoping that it builds revenue numbers in what is expected to be a slow holiday season. Unemployment is expected to continue rising and is nearly at 10% already, with certain states reporting unemployment rates that are much higher than the national average. California, for instance, the nation’s most populated state, is reporting current unemployment levels over 12%. Almost no one is in a better financial position today than they were a year ago or two years ago, and as a result expectations for holiday shoppers are tempered.

To help give holiday shoppers options for financing gifts this year, many large retailers are offering layaway plans. These programs were used extensively until the early 90’s when it became easy for anyone to get a credit card with a sufficiently large credit line. The

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The IRS struggles every year to collect unpaid taxes. Interest and penalties accrue on all tax debts until paid and often penalties and interest can equal two or three times the original tax amount. However, the IRS and Congress soon realized that getting something was better than nothing and that it made sense to forgive tax debt if at least some portion of the tax was recovered. This resulted in the Offer in Compromise program.

The IRS has made great strides in improving the processing of OICs. These efficiencies are making it easier for taxpayers to navigate the OIC process and enable them to receive responses in a timely manner.

When an OIC is submitted, the IRS will verify that it can process the offer. The offer will be processed if the taxpayer has: (1) paid the $150 application fee; (2) filed all back tax returns; (3) is not actively involved in a bankruptcy proceeding; and (4) not been involved in an on-going audit.

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