Spring is starting to bust out here, but I’m still thinking about snowflakes. As in debt snowflakes. After a brief pause for an all-cash Christmas and some much needed all-cash home improvements, we are again focused on paying off all non-mortgage debt as quickly as possible.
Debt snowflaking is the most successful method I’ve used to eliminate debt. If you take all of your “found money” (basically anything that doesn’t regularly come in in the way of a salary or business income) and apply it toward your debt, it can add up fast. If you start actively looking for ways of creating debt snowflakes, it goes even faster.
Consider this: Since October, we’ve snowflaked almost $3700 to our non-mortgage debt, just by using the found money/snowflake method. The largest snowflake was $375.40 and the smallest was $7.50. The average amount was $80.24
So what kind of things can you snowflake? Literally anything. Here is a list of methods I’ve used or have read about others using to pay down debt.
- Refunds and reimbursements
- Coupon savings
- Garage/Tag/Yard sale proceeds
- Sell your books
- eBay sales
- Bonuses at work (does anyone get those anymore?)
- Income from side businesses
- Income from part-time work
- Selling artwork or crafts on Etsy
- Proceeds from cash back debit cards
- Swagbucks (earn money by surfing the web)
- Money gifts (birthday checks from Grandma, etc.)
- Canceling memberships – especially little-used ones (gyms, Netflix, etc.)
I know this list is just the beginning. If you’ve got a way of paying down debt that isn’t on this list, please add it in the comments below. I’d love to hear about it!