What Is The Debt Snowflake Strategy, and How Will It Help Eliminate Debt?

This debt snowflake concept focuses on paying off debt with small amounts of money every time it becomes available to you. The idea is that if you make micro-payments every time you have the funds available, it will pay off your debt faster and save you on interest with money that you will not miss from your budget.

This article will cover how to practically execute the debt snowflake method within your daily life, where to get the money, and how it relates to other debt repayment strategies. We will also discuss how to stay motivated in the process.

How to implement the debt snowflake strategy

Make payments to your debt every time extra money comes available to you.

Where can I find the extra money?

This money can come from many places within your budget. 

  • Suppose you’re under budget on any of your bills or groceries, use the money toward your debts. Because you have already budgeted for the total amount, take the excess cash and immediately put it toward your debt.
  • Imagine you find money in the laundry. This is always a pleasant surprise and a great way to put money that was omitted entirely in your budget toward your debt.
  • Utilize rebate checks or sales. Budget for the item at full price and put your savings toward your debt.
  • Use your change jar. If you use a lot of cash, you know your change jar fills up quickly. Therefore, you can cash in your change and pay off your debt using spare change.

How can I create extra money within my budget?

You don’t necessarily have to use money that randomly becomes available to you. Instead, you can create ways to gain a little extra money to set aside for your debt snowflake payments.


  • Couponing is a great way to save money on your grocery bills. This will help you come under budget and ensure a weekly payment to your debt.
  • Cut your cable bill. Many people have decided to ditch their cable bill and use subscriptions like Netflix or Hulu instead. Since you already have cable within your monthly budget, use the savings toward your debt.
  • Cancel subscriptions. If you have monthly subscriptions that you don’t utilize, cancel them, and use that fee amount toward your debt-free journey.
  • Side hustles are another significant way to help eliminate your debt. 
  • Selling your unwanted items either in a garage sale or on a marketplace platform is an easy way to get some extra funds to go toward your goals.
  • Choose a cheaper way to eat out. If you decide to eat out, choose a happy hour or maybe split a meal with your significant other. Then, use your savings immediately toward those debt payments.

Debt snowflake vs. debt snowball vs. debt avalanche

  • The debt snowflake method focuses on small amounts of money not necessarily budgeted toward debt that is put toward your debt repayment. This system is ideal for people struggling to pay more than the minimum payments toward their debt. 
  • The debt snowball method says to pay all your minimum payments on your debt except your smallest debt. You should pay as much as you can toward your smallest debt. Once the smallest one is paid off, use all the money you put toward the smallest debt and combine it with the minimum payment of the next smallest debt. This will create a snowball effect making your payments larger and larger as you work toward paying your larger debt obligations. Furthermore, this method is excellent for people to stay motivated by seeing the number of debts they have decrease with every debt they pay off.
  • The debt avalanche method places your debt repayment priorities on the highest interest first, then works your way down the line to paying the debt with the lowest interest rate last. This process is ideal for people who want to spend the smallest interest on their borrowed money. 

It is highly recommended that you use the debt snowflake method in combination with either the debt snowball or debt avalanche method, depending on your personal financial goals.

How to stay motivated with your snowflake payments

It is essential to stay inspired by this process. It may feel like these $5-$20 payments are not helping you reach your goal and have you questioning why you are doing it. 


Here are some tips to help motivate you to stay on track.

  • Track the payments you’re making. Tracking your payments makes it easier to look at the whole picture. You will see how these payments will add up to pay off your debt faster and save you money on interest. You can create a spreadsheet or find a cute savings goal printable on the internet.
  • Remember why you are working toward your debt-free goals. You began this journey for a reason, and you need to keep that in focus while working toward your goal. Create a vision board, daydream, have it written on the top of your planner and your monthly budget.
  • Set repayment goals and treat yourself when you make them. You can start with small goals and increase their size as you get more comfortable with your budget.


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