Containing Your Debt

Often while you are in the process of trying to increase your income to cover your monthly expenses it can be difficult to keep track of your specific debts.  One area where people always seem to get into trouble is with credit cards.  Most people tend to have multiple credit cards and owe a lot on each one.

One technique that you can use is to contain certain debts like credit cards while you are in the process of eliminating debt or increasing your income.  It is not suggested that you use this strategy as a first choice.  Expllore other options first to see if you can find something else that may work, but if not then give the following strategy a try.

For instance let's say you had 5 credit cards and they are all almost at the maximum limit with various different payment times during the month.  With a little advanced planning you can create a situation where you can have containment of the debt by using a revolving payment situation.

What will happen is that you will pay the required monthly payment for the first credit card and then draw out funds to make the next card's payment.  You would in turn do this for all of the cards.  This way one card pays another card and you are containing the debt within each card without increasing the balance.

The only thing you will need to monitor closely is the interest on the cards.

Once you get this strategy working you will have bought yourself some time in the short term and will have successfully contained that particular debt.  Remember to concentrate on paying the debts with the highest interest rates first.