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    Explore The Debt Snowflake Method For Debt Reduction

    Carrying a large amount of debt can be a heavy burden for most people to bear. It doesn’t only affect one’s financial wellbeing, but their mental wellbeing as well.

    The first step towards becoming debt-free is deciding to take action; it requires a change in how borrowers view their relationship with money and debt. 

    This shift in perspective is a key component of the debt snowflake method, a debt reduction strategy that we’ll explore in-depth.

    The Debt Snowflake Method In Action 

    The majority of debt reduction strategies involve budgeting a specific amount per month to devote to repaying debt.

    The debt snowflake strategy doesn’t pledge a certain amount monthly but rather looks for minor savings in day-to-day transactions that can be applied to an existing debt load. 

    As mentioned above, the snowflake method is a different way of looking at money and debt. For example, let’s say an individual usually buys a large coffee every morning for work.

    They could instead purchase a small coffee, saving $1.50. These dollar-and-a-half savings can then be used to pay down a credit card or personal loan.

    While the one-off saving of $1.50 may not seem like a consequential amount, this strategy applied ubiquitously to one’s spending habits can help zero out debts much sooner.  

    How The Method Works 

    Example 1: Imagine you spend $5.50 on a coffee and muffin every morning on the way to work. Instead of purchasing both items, you could make coffee at home and take it to work in a travel mug. This will save around $2.00, which over a month means $40.00 extra to put towards paying down debt. 

    Example 2: Grocery stores will offer several options on a specific item. Instead of buying the same option every time, such as the same brand of pasta sauce, purchase whatever is on sale. Doing this with multiple items can create an extra few dollars that can be devoted to debt payment. 

    How To Budget Effectively For Repaying Debt 

    The hardest part of becoming debt-free is staying committed to whatever strategy or method is being used.

    As most people are aware, it’s much easier to build up debt than it is to pay it down.

    Below are some budgeting considerations regarding debt. 

    • Check Credit Score: Credit bureaus offer people the opportunity to check their credit report without it harming their score. Many bureaus, such as TransUnion, will even offer insight into what’s keeping their score down.
    • Consolidate Debt: Consolidation loans and other forms of debt refinancing can repackage an individual's debt into a single payment with a lower interest rate.

    How Consolidation Can Help 

    Anyone with several high-interest debts should strongly consider consolidating their debt with a consolidation loan.

    This involves taking out one loan to pay off all outstanding debt, leaving a borrower with a single monthly payment at a lower interest rate ideally.

    • Lowers Monthly Payments: Because of the reduced interest rate, monthly payments are usually more affordable than what they were before. This means that any extra payments made through the snowflake method have a much greater impact on the principal amount of the debt.
    • Simplified Payment: Applying small amounts of savings to several different accounts can make it appear as if little progress is being made. Because debt consolidation results in a single payment, the benefits of the snowflake method are more readily apparent. 

    Debt Snowflake Versus Debt Snowball 

    The debt snowball method is a much more well-known debt reduction strategy than the snowflake method. It involves taking the account with the smallest balance and aggressively paying it off first.

    This is different from the snowflake strategy in several ways. 

    • A Budgetary Approach: Debt snowball method budgets a specific amount of money per month for the repayment of a debt. The debt snowflake method makes no budgetary commitment and instead focuses on saving money where one can and applying those savings to an account.
    • Debt Specific: The snowflake strategy doesn’t target any debt specifically and is instead concerned with small ways to save money. The debt snowball method, on the other hand, is focused on one account at a time; paying off the smallest debt then moving onto the following smaller one.

    While these two approaches are different, they’re still very compatible. Using them in tandem will produce better results than using one on its own. 


    The debt snowflake method is a debt reduction strategy that not only aids in paying down debt faster but also changes the relationship you have with spending money.

    Even after zero-debt is achieved, the habits developed throughout the process can then be applied to saving money.