If you're looking to shave down your debt, the "snowflake" method helps you relentlessly whittle your debt away with prioritized micro-payments.
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What is snowflaking? First a point of reference. "Snowballing" is a popular method of paying off debt championed by financial adviser Dave Ramsey, where the payments from debts you've finished paying off are rolling into the payments for the next debt on your list, creating an ever-growing pool of money to rapidly pay down debt. Many people have found the snowball method effective at helping them get out from overwhelming debt and get a handle on their personal finances.
The snowflake method is a twist on the snowball method of debt repayment. In addition to ranking and downhill-paying your debts, you use micro-payments to accelerate the pay off. Every time you score a little extra money from anywhere—selling something on eBay, extra money from a side job, quarterly bonus at work, money left over in your budget at the end of the month—you immediately pay a little extra on the debt at the top of your list.
The debt snowflake method serves both a psychological and financial purpose. On the mental level, it encourages you to always be looking out for extra money and opportunities to pay down your debt and, by extension, curb expenses that prevent you from doing so. On the financial side of things, it makes sure that money freely floating outside your budget gets put to use immediately, and the frequent payments decrease the penalizing interest amounts. For more information about debt snowflaking, check out the full article below, and if you use debt snowflaking or a variation on it, make sure to tell us the pros and cons in the comments. Snowflaking - A Primer [I've Paid For This Twice Already]