When faced with a mounting debt, you might feel discouraged or overwhelmed to the point of giving up. However, any debt can be paid off when you use the right payment strategies. The steps to becoming debt free are not easy and it will take time. However, you can simplify the repayment process by using a strategy just like the ‘Snowflake’ strategy against debt.
What is the ‘Snowflake’ Strategy?
It was popular radio host Dave Ramsey who introduced the Snowflake strategy against debt. The idea is that you sort out your debt repayment according to the balance size. The strategy is also commonly referred to as debt snowball.
To put it simply, snowflaking is the act of using small action to save money so you can use that money to pay off your debt instead. This is one of the quickest way to repay your debt. Here is an example scenario: instead of buying snacks worth $10, you heat up leftover food for snack. The $10 you saved will be set aside to add to your debt repayment. If you do more of this, you can easily pay off your debt within your desired repayment timeline.
Steps to Actually Make the Payment
Putting your payment strategies in place is just one step into your goal to become debt free faster. It’s like having one foot on the door. But you wouldn’t get there unless both feet are in. Just like any other payment plans, the ‘snowflake’ strategy would not work unless you ensure that the money you set aside is used for repayment of debts.
One technique you can use is to automatically make the debt payment with every savings you make. Most loan companies or debtors allow you to make several small payments to your account. If they do, then make sure to take advantage of that rather than set it aside until you completely forget about it.
If you find that a lot of hassle to do, especially when you are constantly on the go, another approach you could use for monitoring your payment strategies is by listing them down. When you write it down, you will be able to make a note of the savings you made and how much extra payment you can add to your debt. When you write it down though, do not wait too long before you take action. If you do, then there is a chance that you will use that
‘extra money’ you have on something else.
Where Do You Find the Snowflake From?
People with bad credit struggle with the idea of finding extra money to pay for their debts. After all, when you reach the point wherein your debt is bigger than your spending income, it just seems impossible to do. But you have to realize that your everyday life is filled with spending decisions. There are several opportunities for you to spend less than you normally do and use whatever money you intend to use on something else – which in this case is to pay off your debt. Check them out online at https://www.debtmediators.com.au/debt-solutions/payment-strategies/.