Consumer Comeback Blog

How to Snowflake your Debt and Improve Your Credit Score

When it comes to paying off debt, there are a number of different approaches and theories. One method of paying off debt and improving your credit score, for example, is known as the “snowball” method. In this method, you pay a little bit extra each month to your credit card with the lowest balance. Once that card is paid off, you send it’s entire payment plus the extra to the next highest balance credit card. Thus you “snowball” your debt reduction.

Another method is known as the “Snowflaking” method. This method of paying down debt relies on a different tactic. It is somewhat based on the snowball method, but with an added twist. It uses something called “micropayments” to rapidly reduce your debt.

Here’s how Snowflaking works:

  1. Make sure it works with your credit card company. Snowflaking relies on making multiple payments to your credit card company each month. Usually, you can make these payments several times a month, and they will all go toward paying off your balances. Make sure, however, that you check the credit card agreement. Some companies may have a sort of fee associated with multiple payments.
  2. Use irregular snowflake payments. This is how you’ll really see things get moving. Let’s say you decide to pack your lunch instead of going to that deli and getting the $8.50 sandwich and chips special. Make a payment of $8.50 to your credit card right then. If you work an hour of overtime, send that one hour’s worth of extra pay to your credit card company.
  3. Turn snowflakes into a snowball. Follow the snowball principle here, too. Once you’ve paid off that lowest balance credit card, start sending snowflakes, as well as the minimum monthly payment, to the credit card with the next highest balance.

Snowflaking is quick and easy. If you’re smart about it, you’ll make your snowflake payments via an electronic draft from your bank. This way, you’ll save on the cost of stamps, too.

If you want to rapidly reduce your credit card debt and improve your credit score, start Snowflaking today.

Photo via Muffet

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