How to Use the Snowflake Strategy to Get out of Debt

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You can pay down your debt in no time. | eternalcreative/iStock/Getty Images

Does debt have you down? Are you working toward paying off balances but need help attacking your debt? Fortunately, there are several ways for you to reduce lingering debt. One of them is called the debt snowflake method, and it can help you realize debt freedom a lot quicker.

Here’s how to use the snowflake strategy to get out of debt.

What is the debt snowflake method?

The debt snowflake is a method for paying off debt using small savings. The small savings are money you find during your daily activities. For example, you could use money from a rebate check or money from a side job to help pay down debt.

How it’s different from other debt payoff strategies

The debt snowflake is among other popular debt payoff strategies, such as the debt avalanche and debt snowball. However, these methods are different from the debt snowflake. In those methods, you use money that has been specifically set aside for your debt payment plan. On the other hand, the debt snowflake uses extra cash to pay down debt.

How to use the debt snowflake

Continue to follow your budget as you normally would. However, take whatever money you save each day and put it toward your debt. For example, if you decide to make coffee at home instead of buying a cup at a coffee shop, take the amount saved and transfer it to your savings account. Or if you decide to hold a garage sale, use the earnings from the sale for savings. You’ll start to see results in no time.

Benefits of the debt snowflake method

Who says you have to stick to just one method of paying off your debt? The debt snowflake can be used along with the snowball and the debt avalanche methods. All you need to do is take the small amounts of money you save on a day-to-day basis and apply it toward your outstanding debt. Over time, small savings can help you chip away at your balances.

Tips for using the debt snowflake method

  • Make the most of extra cash in your bank account. If you have money left over at the end of the month, consider making a transfer to your savings account. However, make sure you’re aware of your bank’s policy when it comes to transfers. Familiarizing yourself with their policy will help you avoid incurring fees for making too many transfers.
  • Find ways to cut down on spending. Look for ways to find extra cash in your budget. Are there subscriptions you could do without or subscriptions you forgot about? Take the necessary steps to cut them out of your budget. Do you buy clothes or accessories you really don’t need? Take an inventory of your closet to see what you already have so you don’t end up buying the same outfits twice. Also, think about selling clothes and accessories you no longer wear.

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