September 4, 2010       Latest Settlement Updates                           Creditor: Bank Of America     Principal Balance: $27,359.55    Settled Amount: $54,720.00                            Creditor: Barclays Bank     Principal Balance: $28,848.45    Settled Amount: $5,769.69                            Creditor: Chase     Principal Balance: $45,000.00    Settled Amount: $8,000.00                            Creditor: Chase     Principal Balance: $8,628.00    Settled Amount: $2,157.00                            Creditor: American Express     Principal Balance: $10,000.00    Settled Amount: $2,500.00                            Creditor: Wells Fargo     Principal Balance: $20,500.00    Settled Amount: $5,000.00                            Creditor: Bank Of America     Principal Balance: $60,811.43    Settled Amount: $9,200.00                            Creditor: Bank Of America     Principal Balance: $24,671.26    Settled Amount: $3,720.00                            Creditor: Bank Of America     Principal Balance: $20,124.84    Settled Amount: $3,020.00                            Creditor: Chase     Principal Balance: $9,687.16    Settled Amount: $1,500.00                            Creditor: Chase     Principal Balance: $15,854.31    Settled Amount: $1,585.42                            Creditor: Bank Of America     Principal Balance: $34,256.00    Settled Amount: $5,200.00                            Creditor: Bank Of America     Principal Balance: $29,702.80    Settled Amount: $4,500.00                            Creditor: American Express     Principal Balance: $9,073.96    Settled Amount: $2,200.00                            Creditor: Professional Recovery Service     Principal Balance: $46,465.10    Settled Amount: $9,293.19                            

Many individuals have faced all sorts of financial problems, seeking relief. Brite Credit 123 believes that relief only  comes if you are well educated about debt. Here at Brite Credit 123, we have made it our primary goal to focus on providing education to our customers.

We provide information that assists our customers in managing their personal debt, as they work their way back to financial freedom. Many of us do not keep track of how much we spend and where our money is spent. In order to be financially stable, it is important to track where your money is spent, how much is spent, and how frequently you spend. Understanding spending creates an invaluable foundation for a budget and, ultimately, for financial stability.

Keep in mind the following questions:

  • Why am I buying this?
  • Where is my money really going?
  • Are these items I can do without?
  • What is this costing me annually?

What is a Budget?
A budget is a carefully constructed plan that dictates how much you will spend on the different things you need and want per month. Having a budget plan set can help identify bad spending habits, as well as prevent over spending.

Some may shy away from creating a budget, thinking it is too time consuming and unnecessary, concluding it wouldn’t make a difference. But, in reality, taking the time to create a budget can help establish good spending habits, ultimately strengthening the fabric of a household. Following the steps listed below can help you efficiently create a budget plan that will effectively serve your needs.

Step 1: Gather every financial statement you can.

  • Bank statements
  • Investment accounts
  • Recent utility bills
  • Any information regarding a source of income or expenses

Step 2: Record all sources of income.
If you are self-employed or have any outside sources of income, be sure to record these as well. If your income is in the form of a regular paycheck where taxes are automatically deducted, then using the net income or take home pay amount is fine. Record this total income as a monthly amount.

Step 3: Create a list of monthly expenses.

  • Mortgage payment
  • Car payment
  • Auto insurance
  • Groceries
  • Utilities
  • Entertainment
  • All in all, everything you spend money on.

Step 4: Break expenses into two categories: Fixed and Variable.
Fixed expenses are those that occur every month and are required for your way of living. Examples of fixed expenses are mortgages, car payments, internet/cable service, and credit card payments. These expenses, for the most part, are essential but not likely to change in the budget.
Variable expenses are those that will change throughout months. Variable expenses include groceries, gasoline, entertainment, dining out, and gifts.

Step 5: Total all monthly income and monthly expenses.
Monthly income > Monthly expenses = Off to a good start!
Monthly income < Monthly expenses = Changes need to be made/ Find areas to be cut
After you have created your budget plan and have made all the adjustments needed, it is important to keep reviewing this budget plan periodically in order to control your spending habits.