What is the ‘Debt Snowflake Method’ and How Can It Help You Pay Off Your Loans?
Paying off debts can be really overwhelming sometimes – in case you feel this way, don’t worry, because you’re not alone. Debt is a nationwide epidemic, only those with loads of cash do not fret about them. Heck, even movie stars that we know earn huge salaries have debts to pay. Unless they are up there earning millions, even people with high paying jobs have loans to pay – mortgages, car financing, medical expenses, student loans, and of course the most popular, credit card loans.
If you are looking for an effective way of paying off your debt, there are few that expert strategists suggest. There’s the debt snowball method as well as the debt avalanche approach. However both methods rely on a monthly budget allocated for debt payoff, as well as throwing in extra money that you receive towards your debt that you have made your number one priority. But what about those people who do not have enough left from their monthly incomes to direct towards debt repayment? This is where the snowflake method of debt payment comes in, to cater to these kinds of individuals who still have the need to completely wipe off their debts one way or another.
What is the Debt Snowflake Method?
What is in a name? First, let us discuss why it’s called ‘snowflake’. Yes, it’s a cute term to use for not-so-cute debt repayment, but it is called snowflake to segregate it from the other debt repayment called ‘snowball’ method. From their names alone, you will get the idea that one method involves something small (snowflake) and opposite one is relates to something big (snowball). The term is not literal, so there won’t be any gathering of ‘snow’ in the process of repaying your debt.
Not being able to spare some money monthly to pay off your debt does not mean you won’t be able to. The snowflake method of debt payment is quite simple, because you don’t have extra money to pay your loans, you can find other ways to produce extra ‘pocket change’ you can point to the direction of decreasing your loan amounts.
How Do You Find Spare Money?
If you look really hard and examine your lifestyle, you would find an area where you can gather spare money or pocket change with the intention of saving it. Take for example grocery shopping – if it hasn’t been your practice to use coupons to buy groceries, you may want to start now. Do you know that by using coupons you can save as much as $5 from your weekly grocery shopping budget? That totals to $20 spare money monthly that you can use to pay off your debt. Even if you can apply that to just the interests of your current loan, it still can bring some change to your loan amount, and gets you motivated to find more spare money.
Another way is lessening the times you eat or dine out. If it has been your practice to eat out or buy your lunch at work every day with, let’s just say, $5 amount of food, you can save in this area, too. You can reheat leftover food from the night before and bring to work as packed lunch. If you do this every day for 5 days, that’s a weekly savings of $25. And that can be converted to $100 monthly spare money. Add that to your $20 savings from using grocery coupons, you now have $120 monthly spare change! Other areas you can make adjustments are monthly subscriptions like Netflix and Hulu, choosing a more affordable salon for your monthly haircuts, decreasing the number of times you dine out, and a more others we are sure you can think of now.
Is The Debt Snowflake Method Effective?
Any method of debt payment can be effective as long as you put your mind to it. If you are focused and motivated in getting out of debt, you can surely make the snowflake method very effective. As it is, maybe your lifestyle is the culprit why you cannot find extra money monthly to pay your debt. And in case you have money allocated monthly for paying your loans, applying the snowflake method is one way you can speed up your debt repayment.
More inFinancial Advisory
Become a Millionaire Before Getting Retired | Fidelity’s Ultimate Retirement Advice
We have all daydreamed about it at one point or another: sitting on a pristine beach with the sun kissing our...October 19, 2023
Rising Real Estate: Why You Might Want to Pause Buying and Rent Instead
Picture this: The sun is shining, there is a gentle breeze, and you find yourself at a crossroads. One sign points...October 15, 2023
New Limitations for Cruise Ship Customers as Demand Rises
Imagine sipping a mojito on the sunlit deck of a cruise ship, surrounded by nothing but the endless blue. That idyllic...October 5, 2023
U.S. Credit Card Debt Exceeds $1 Trillion for the First Time in History
The average American consumer carries a credit card balance of approximately $6,000. That is a large sum of credit card debt...September 28, 2023
How Wall Street Profits From Renewable Energy
In the dynamic world of finance, trends come and go. Still, some financial strategies have captured our attention, like the rise of environmentally...September 24, 2023
Rising Cost Of Living Is ‘Forcing’ U.S. Homeowners to Sell Their Houses
One could argue that the American Dream, for many, has always been intertwined with the image of a white picket fence...September 16, 2023
The Top Five Wildest Escapes in the U.K.
Are you looking for an adventure that is closer to home? The U.K. is home to some of the wildest landscapes...September 7, 2023
How the Mortgage Rate Dip Impacts Homeowners and Homebuyers
The recent dip in mortgage rates has homeowners and potential buyers excited. The housing market is on the rise, and homeowners...September 2, 2023
Why Do People Apply for Personal Loans?
Personal loans are one of the most popular types of loans offered today. A personal loan is a great option for...August 29, 2023