If you haven’t warmed up to the snowball or avalanche debt payoff methods, think smaller. Much smaller.
Consider the debt snowflake strategy for tackling debt. Unlike its better-known siblings, the snowflake method doesn’t involve a structured budgeting system for paying down your debt — think of it more like an easy way to throw a little extra money toward your debt.
Just like snowflakes, tiny payments might not seem like much when tackling a mountain of debt. But when they pile up, your snowflake payments can add up to a lot of help. Here’s how.
How Does the Debt Snowflake Method Work?
First, although they all sound frosty, debt snowflake is not another variation of debt avalanche and debt snowball, two popular methods for tackling debt. Here’s a summary of those methods, in case you’re unfamiliar with them:
The avalanche method prioritizes paying off debts with the highest interest rates first. After the biggest balance is paid off, you move on to the next-highest interest debt, and so on. It’s the best way to save the most money on interest as you’re paying down your debt. For the snowball method, you pay off the smallest amount of debt first, then work your way up through paying off progressively larger debts. It’s great for people who are motivated by small wins as they watch individual debts disappear faster.
Both options involve creating schedules for making payments and putting any money toward the targeted goal — that’s not the case
