How to Snowflake Your Debt

December 12, 2016 by Amanda Blankenship

Debt Snowflake
‘Tis the season… to pay off your debt that is. When you think snowflakes you don’t likely think off a debt payoff plan but that is about to change! Once you’ve read this article you’ll want to start snow flaking your debt immediately.

What is a Debt Snowflake?

A debt snowflake sounds pretty terrifying, right? Think about a literal blizzard of debt. It sends chills up your spine. Snow flaking your debt, however, is anything but terrifying. A debt snowflake also isn’t a cute art project your child cut out and brought home from school though.

Snow flaking your debt will take a bit of patience and a lot of willpower. Paying off your debt is already a huge, daunting task but performing a “debt snowflake” makes it sound less terrifying and can make debt much more manageable.

To perform a debt snowflake you simply take any additional income and place it towards paying off your debt. This will include birthday money, gift money, bonuses and any additional income. To successfully snowflake your debt you’ll want to replace some of the items you regularly spend your money on with additional ways to make some extra cash.

How You Snowflake Debt

As previously stated you’ll want to throw any of your “extra” money at paying off your debt. You won’t want to tackle your debt snowflake until you have a $1,000 emergency fund started though (Finance 101 taught me that). After you’ve got that stashed away you can start to snowflake your debt.

Now that you’ve got emergency funds saved and you’ve decided to debt snowflake you have to decide what money will be used to pay off your debt. The following is a list of funds that are usually used to snowflake your debt:

  • Birthday money (gift money)
  • Holiday money (gift money)
  • Work bonuses
  • Additional income
    • Selling items from your home (yard sales, garage sales)
    • Picking up a side job (part-time positions, etc)
    • Blogging for profit (starting or buying a blog for income)
    • Freelancing (writing, editing, project-based positions)
    • Starting a small business (mowing lawns, etc)

If you take each of these additional sources of income and apply it to your debt you can make a substantial payoff in a year’s time. Think about it – the amount of cash you get in gifts, bonuses and other income throughout the year is being applied to your debt. What better way to pay it off? So, here is the challenge…

Debt Snowflake Challenge

In 2017 I am going to take the Debt Snowflake Challenge, which means every bonus, every freelance check, everything I sell and every cash-money gift I receive I will apply that money to my debt. Will you do the same?

The Snowflake Debt Challenge is basically taking all of your “extra” cash in 2017 and applying it to debt. If you’re lucky enough not to have any debt you’ll apply it to savings or investments. That is the 2017 plan so far… Although I already have a debt payoff plan, debt snow flaking will hold a huge part in it.

Will you take the challenge? 

Photo: hurricanemaine

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