
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 inLoans & Credit
-
These Hollywood Stars Made Huge Credit Card Mistakes, but We Don’t Have to
We often look in awe at celebrities. The work they do, the lives they live, it’s all so glamorous! But some...
January 17, 2023 -
Investments in Food Products Can Prove Expensive For Many People
Apart from often complaining that they don’t have enough time to eat, the biggest excuse given by people for not eating...
January 17, 2023 -
Oprah’s Montecito Mega-mansion is Not What an Average Billionaire’s Home Looks Like
Oprah Winfrey is one of the most influential and powerful people in the world today. She is among the most famous...
January 17, 2023 -
These On-set Demands Made by Celebrities are Just Bizarre
For a celebrity in Hollywood, nothing too ordinary would do. Be it their lifestyle, their material possessions or their acting method....
January 17, 2023 -
How Brexit Impacted Britain’s Hierarchy Among the Other Nations
Somehow Boris Johnson was right, as the process of Brexit seems like it has been a source of national humiliation (their...
January 17, 2023 -
Why Millennials Drive Less than Any Other Generation
Millennials seem to be the generation that everyone loves to hate. From clothing choices to career paths to food preferences, millennials...
January 15, 2023 -
Take Notes! Here’s How You Can Convert Your Bathroom into a Low-Cost but High-End Spa
For a lot of people, our bathrooms aren’t just a place we bathe or use the WC, it’s like a sanctuary...
January 14, 2023 -
Why are So Many Americans Losing Their Homes?
The typical American dream is to have a nice home with all the creature comforts one could possibly need and, perhaps,...
January 14, 2023 -
Online Business: 14 Steps to Start Your Business (Part 2)
Step 9. Build Your Brand Start to think up domain names as soon as you decide on the direction of your business....
January 14, 2023
You must be logged in to post a comment Login