- $250.00 was a payment for some bookkeeping work I did.
- $481.29 was the total of some small commission checks my husband received from his business.
- $25.00 was a birthday check I received from my in-laws.
- $65.44 was a payment from Amazon for the sale of some books.
I’m almost at the point where I can throw another $100 or so toward the card. This represents some additional Amazon sales, a health insurance reimbursement, and a Costco membership rebate.
These micropayments sometimes go by another name: debt snowflake. The idea is that you take a lot of these little flakes and apply them to your debt snowball. And the practice can be surprisingly effective…and addictive.
Some of the things I’ve used as debt snowflakes, or plan to, include:
- Insurance reimbursements
- Rebates of all kinds (I’m waiting on a contacts rebate and a cell phone rebate right now.)
- Money from selling on Craigslist, eBay, Amazon, etc.
- Savings from another part of the budget – like groceries
- Payments for extra work done
The list goes on. I am constantly on the lookout for this found money and about once a week or so I make an extra payment to my credit card with anything that I’ve collected.
If you’d like to start using debt snowflakes to get out of debt, you’ll want to check with your credit card company, mortgage lender, or any other debt that you’re working at paying off and find out what their payment policies are. My credit card only allows me to make four online payments a month so I have to limit my snowflake payments to about once a week.
Are you currently snowflaking your way out of debt? Where is your found money coming from?