The first method is appropriate allocation of expenses to the delinquent loans. Company has a fixed percentage table which is used to allocate the expenses to the delinquent loans. Company can use a flexible table which reflects the current macro-economic situation. In this way the delinquent losses will correctly reflect the expected loss and thus smooth the earnings. Similar table can be applied to current credit cards loan outstanding. The percentage of losses should correctly reflect the current macro-economic situation as the losses tend to increase due to deteriorating losses. Company can improvise on the methodology on the basis of which allowance for loans and charge offs determined. With respect to allocation of expenses due to delayed payments if the above mentioned suggestions can be implemented then it can help to smooth earnings.