{"id":8365,"date":"2022-01-18T19:14:11","date_gmt":"2022-01-18T18:14:11","guid":{"rendered":"https:\/\/businessfinancenews.com\/?p=8365"},"modified":"2023-08-24T16:19:07","modified_gmt":"2023-08-24T15:19:07","slug":"debt-snowflake-method","status":"publish","type":"post","link":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/","title":{"rendered":"Debt Snowflake Method"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Does Debt Snowflake Method Actually Work?<\/h2>\n\n\n\n<p>Two of the most popular debt payoff strategies are&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200924180013\/https:\/\/www.magnifymoney.com\/calculator\/snowball-avalanche-calculator\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5583\">debt snowball and debt avalanche.<\/a>&nbsp;Debt snowball, popularized by Dave Ramsey, involves paying off your debts from the smallest to the largest balance. Debt avalanche involves paying off your debts from highest to lowest interest rate.<\/p>\n\n\n\n<p>There\u2019s another winter-related strategy you might want to consider if you\u2019re looking to repay significant debt: debt snowflake. Ideally, this strategy should be used in conjunction with either of the above methods. It helps you save small, snowflake-sized amounts of money each day or week to put toward your debt.<\/p>\n\n\n\n<p>Read on for everything you need to know about the debt snowflake strategy.<\/p>\n\n\n\n<p>The debt snowflake strategy involves saving in little ways each day and then putting those small savings toward your debt. Ideally, debt snowflake shouldn\u2019t be used by itself, but rather with another debt repayment strategy.<\/p>\n\n\n\n<p>Priya Malani, founding partner of&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200922202841\/https:\/\/www.stashwealth.com\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5584\">Stash Wealth<\/a>, a financial planning company, said she wouldn\u2019t call debt snowflake a \u201cmethod,\u201d per se. \u201cI would think of it more as a bonus or add-on strategy that works in conjunction with one of the main methods of debt paydown, [like the] snowball or avalanche,\u201d she said.<\/p>\n\n\n\n<p>So how does it work? It\u2019s quite simple. Let\u2019s say you bring your lunch one day instead of spending $8 on a salad. You can put that $8 toward your debt immediately by making a small payment online. Or you can keep track of your \u201csnowflakes\u201d and put them toward your debt at the end of the month.<\/p>\n\n\n\n<p>There are many areas you can reassess in your daily life to find small savings. Consider the following ways to cut back:<\/p>\n\n\n\n<ul><li><strong>Cancel old subscriptions.<\/strong>&nbsp;Malani said this can include everything from magazine and music subscriptions (like Spotify) to gym memberships and movie\/TV subscriptions (like Hulu).<\/li><li><strong>Sell old clothing and goods online.<\/strong>&nbsp;If you have old clothing, shoes or accessories sitting in your closet, consider selling them on Poshmark, eBay or through a Facebook buy\/sell\/trade group.<\/li><li><strong>If you\u2019re going out, do it during happy hour.<\/strong>&nbsp;Instead of spending $13 on a craft cocktail, find a bar that sells one for $6 as part of a happy hour special, Malani recommends.<\/li><li><strong>Take uberPOOLS or Express POOLS whenever you can.<\/strong>&nbsp;UberPOOLS are significantly cheaper than normal Ubers, and Express Pools can be up to 50% cheaper than uberPOOLS. Malani also recommends taking public transportation whenever you can.<\/li><li><strong>Skip the morning latte.<\/strong>&nbsp;Beverly Harzog, credit card expert and consumer finance analyst for U.S. News &amp; World Report, said just because you\u2019re budgeting with the snowflake strategy doesn\u2019t mean you need to skip your latte every day. Instead of getting one six days a week, opt for once a week instead.<\/li><li><strong>Skip convenience items at the grocery store.<\/strong>&nbsp;Pre-washed, pre-cut lettuce is going to run you a lot more than a head of iceberg, Harzog said. Skip convenience items such as this when shopping for your weekly groceries.<\/li><li><strong>Have a low-key night at home.<\/strong>&nbsp;A night out with friends could run you $100 or even $200. Malani recommends having everyone over for a wine night or potluck instead to save a little cash.<\/li><li><strong>Opt for cheaper entertainment.<\/strong>&nbsp;Instead of going to the movies or catching a live show every weekend, consider renting a movie and eating something at home. Just remember: That doesn\u2019t mean you have to become a hermit. \u201cMaybe go to a movie once a month instead of four times a month,\u201d Harzog said.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Debt snowflake: Pros and cons<\/h3>\n\n\n\n<p>The debt snowflake strategy isn\u2019t for everyone. Below, we\u2019ve identified the top three pros and cons associated with the strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Pros<\/h3>\n\n\n\n<ul><li><strong>It\u2019s an easy way to make small changes.<\/strong>&nbsp;Some debt repayment strategies require quite a bit of planning, but the snowflake strategy is fairly simply. All you have to do is save $2, $5 or $10 every so often, and there isn\u2019t much more to it.<\/li><li><strong>There\u2019s a psychological perk.<\/strong>&nbsp;Many people benefit from the small \u201cwins\u201d associated with the debt snowball method. The snowflake has a similar benefit. \u201cThe snowflake strategy reminds you that you are in control of decreasing your debt balance, which has great psychological benefits that help keep you motivated and empowered with your financial life,\u201d Malani said.<\/li><li><strong>It makes you more aware of your spending.<\/strong>&nbsp;It\u2019s easy to get stuck in a pattern of less-than-stellar spending habits without realizing their damage. For example, a $4 latte each weekday might not seem like a lot until you realize that skipping it could save you about $100 a month. \u201cI think [the debt snowflake] makes people stop and think about what they\u2019re doing every single day,\u201d Harzog said.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Cons<\/h3>\n\n\n\n<ul><li><strong>It requires serious organization.<\/strong>&nbsp;If you opt for the debt snowflake strategy, you have to make sure you\u2019re organized. This means either grabbing your cellphone and making a transfer the minute you save money or keeping a list of all your savings to put toward your debt at the end of the month. Harzog recommends staying organized by setting up email or phone reminders to ensure you make your payments.<\/li><li><strong>It doesn\u2019t work well as a stand-alone strategy.<\/strong>&nbsp;Some people want a simple, streamlined solution for paying off their debt. If you\u2019re concerned about balancing too many things, debt snowflake might not be for you, as it works best with another strategy such as&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200926154212\/https:\/\/www.magnifymoney.com\/blog\/pay-down-my-debt\/much-money-debt-snowball-method-costing92943682\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5585\">debt snowball<\/a>&nbsp;or debt avalanche.<\/li><li><strong>You might lose motivation.<\/strong>&nbsp;The savings associated with the debt snowflake strategy are small. Malani said if you struggle to find these small savings, you might feel defeated and could lose your motivation to stay on track.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Debt snowflake makes a difference: Here\u2019s how<\/h3>\n\n\n\n<p>Saving $5 here or $7 there might not seem like it will make a difference in your debt, especially if you have a large balance. But it does.<\/p>\n\n\n\n<p>Let\u2019s say you have $5,000 in credit card debt with a 15% interest rate and a minimum monthly payment of $100. You normally pay $200 per month toward your debt but are able to put an extra $100 toward it by using the snowflake strategy to cut out weekly lattes and other small expenses. Here\u2019s how much of a difference that extra $100 a month can make:<\/p>\n\n\n\n<figure id=\"tablepress-3386\" class=\"wp-block-table\"><table><thead><tr><th><strong>Strategy<\/strong><\/th><th><strong>Total Debt<\/strong><\/th><th><strong>Minimum Payment<\/strong><\/th><th><strong>Monthly Payment<\/strong><\/th><th><strong>Interest Rate<\/strong><\/th><th><strong>Time to Pay Off Debt<\/strong><\/th><th><strong>Total Interest Paid<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>No snowflake<\/strong><\/td><td>$5,000<\/td><td>$100<\/td><td>$200<\/td><td>15%<\/td><td>31 months<\/td><td>$1,033<\/td><\/tr><tr><td><strong>Snowflake<\/strong><\/td><td>$5,000<\/td><td>$100<\/td><td>$300<\/td><td>15%<\/td><td>19 months<\/td><td>$642<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">3 other debt repayment strategies to consider<\/h3>\n\n\n\n<p>Perhaps the debt snowflake, debt snowball and debt avalanche methods aren\u2019t for you. Luckily, there are myriad ways to pay off debt. Below are three other strategies to consider.<\/p>\n\n\n\n<p><strong>Debt consolidation loan.<\/strong>&nbsp;One common way to pay off debt is through a&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200924201336\/https:\/\/www.magnifymoney.com\/blog\/pay-down-my-debt\/what-is-debt-consolidation\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5586\">debt consolidation loan.<\/a>&nbsp;This involves combining all your debt and taking out a personal loan that will go toward the debt as one monthly payment.<\/p>\n\n\n\n<p><a href=\"https:\/\/web.archive.org\/web\/20201024084722\/https:\/\/www.magnifymoney.com\/blog\/pay-down-my-debt\/debt-consolidation-loan-rates\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5587\">Interest rates<\/a>&nbsp;on debt consolidation loans are typically lower than interest rates on credit cards.<\/p>\n\n\n\n<p><strong>Balance transfer credit card.<\/strong>&nbsp;If your debt is credit card-related, you might want to consider a&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200925123937\/https:\/\/www.magnifymoney.com\/compare\/balance-transfer-credit-cards\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5588\">balance transfer credit card.<\/a>&nbsp;These cards typically have introductory rates&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200928212921\/https:\/\/www.magnifymoney.com\/blog\/balance-transfer\/best-balance-transfer-credit-cards741905817\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5589\">as low as 0%,<\/a>&nbsp;which can allow you to repay your debt while saving on interest.<\/p>\n\n\n\n<p>This strategy is only worthwhile if you\u2019re certain you can repay your debt within the introductory rate grace period since the rate after that could be just as high or even higher than your previous rate.<\/p>\n\n\n\n<p><strong>Debt management.<\/strong>&nbsp;If you hold a significant amount of debt and have struggled for years to pay it off, you might benefit from credit counseling. Consider meeting with a nonprofit credit counselor who could help you come up with a&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20200926142525\/https:\/\/www.magnifymoney.com\/blog\/pay-down-my-debt\/debt-management-plans\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5590\">debt management plan.<\/a><\/p>\n\n\n\n<p>Besides helping you stay on track with a debt management plan, nonprofit credit counselors can teach you about good financial habits that help avoid getting into debt again.<\/p>\n\n\n\n<p>Whichever strategy you choose doesn\u2019t matter as long as you\u2019re committed to becoming&nbsp;<a href=\"https:\/\/web.archive.org\/web\/20201001014305\/https:\/\/www.magnifymoney.com\/blog\/pay-down-my-debt\/the-benefits-of-living-debt-free791136744\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"5591\">debt-free.<\/a><\/p>\n\n\n\n<p>\u201cThe right method is the one that works for you \u2014 the one that keeps you motivated and going \u2014 because everyone has different personal circumstances,\u201d Harzog said. \u201cYou have to be very honest with yourself. Take a close look at your budget and your cash flow, and just see what you can do and pick the right method for yourself.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Related Articles<\/h2>\n\n\n\n<p>We want to recommend to you some featured articles related to credit management, credit score, and debt settlement.<\/p>\n\n\n\n<p>We study which are the <a href=\"https:\/\/businessfinancenews.com\/credit\/credit-scoring-models\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6434\">credit scoring models available<\/a>, the <a href=\"https:\/\/businessfinancenews.com\/credit\/chapter-7-vs-chapter-13\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6435\">differences between chapter 7 and chapter 13 for bankruptcy<\/a>, an analysis of the application of <a href=\"https:\/\/businessfinancenews.com\/credit\/chapter-12-bankruptcy\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6436\">chapter 12<\/a>, <a href=\"https:\/\/businessfinancenews.com\/credit\/what-is-apr\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6437\">what is APR and how it is calculated<\/a>, <a href=\"https:\/\/businessfinancenews.com\/credit\/cant-pay-debt\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6438\">options available when you cannot pay your debt<\/a>, and the <a href=\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6439\">debt snowflake method<\/a>.<\/p>\n\n\n\n<p>We have reviews of <a href=\"https:\/\/businessfinancenews.com\/credit\/accredited-debt-relief-review\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6440\">Accredited Debt Relief<\/a> and <a href=\"https:\/\/businessfinancenews.com\/credit\/pacific-debt\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6441\">Pacific Debt<\/a>.<\/p>\n\n\n\n<p>We discuss <a href=\"https:\/\/businessfinancenews.com\/credit\/debt-consolidation-vs-credit-counseling\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6442\">debt consolidation vs credit counseling<\/a>, <a href=\"https:\/\/businessfinancenews.com\/credit\/secured-vs-unsecured-debt\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6443\">secured vs unsecured debt<\/a>, and <a href=\"https:\/\/businessfinancenews.com\/credit\/how-to-settle-credit-card-debt\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6444\">being sued by the debt collector<\/a>.<\/p>\n\n\n\n<p>We analyze if having a <a href=\"https:\/\/businessfinancenews.com\/credit\/does-corporate-card-affect-credit-score\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6445\">corporate card can affect credit score<\/a>, <a href=\"https:\/\/businessfinancenews.com\/credit\/how-to-settle-credit-card-debt\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6446\">how to settle credit card debt<\/a>, and we discuss if your <a href=\"https:\/\/businessfinancenews.com\/credit\/does-credit-score-affect-car-insurance\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6447\">credit score has an influence on car insurance<\/a>. We also deal with a strange <a href=\"https:\/\/businessfinancenews.com\/credit\/national-credit-cards-airlines-line-item-a-possible-identity-theft\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6448\">line item &#8220;national credit cards airlines&#8221;<\/a>.<\/p>\n\n\n\n<p>About student loans, <a href=\"https:\/\/businessfinancenews.com\/credit\/what-happens-if-you-dont-pay-student-loans\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6449\">what happens if you do not pay your student loan<\/a>, and <a href=\"https:\/\/businessfinancenews.com\/credit\/do-student-loans-affect-credit-score\/\" target=\"_blank\" rel=\"noopener\" data-lasso-id=\"6450\">how do student loans affect credit score<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does Debt Snowflake Method Actually Work? Two of the most popular debt payoff strategies are&nbsp;debt snowball and debt avalanche.&nbsp;Debt snowball, popularized by Dave Ramsey, involves paying off your debts from the smallest to the largest balance. Debt avalanche involves paying off your debts from highest to lowest interest rate. There\u2019s another winter-related strategy you might &#8230; <a title=\"Debt Snowflake Method\" class=\"read-more\" href=\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\" aria-label=\"More on Debt Snowflake Method\">Read more<\/a><\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[44],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Debt Snowflake Method - Business Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Debt Snowflake Method - Business Finance\" \/>\n<meta property=\"og:description\" content=\"Does Debt Snowflake Method Actually Work? Two of the most popular debt payoff strategies are&nbsp;debt snowball and debt avalanche.&nbsp;Debt snowball, popularized by Dave Ramsey, involves paying off your debts from the smallest to the largest balance. Debt avalanche involves paying off your debts from highest to lowest interest rate. There\u2019s another winter-related strategy you might ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\" \/>\n<meta property=\"og:site_name\" content=\"Business Finance\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-18T18:14:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-24T15:19:07+00:00\" \/>\n<meta name=\"author\" content=\"J Lipsky\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"J Lipsky\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\"},\"author\":{\"name\":\"J Lipsky\",\"@id\":\"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61\"},\"headline\":\"Debt Snowflake Method\",\"datePublished\":\"2022-01-18T18:14:11+00:00\",\"dateModified\":\"2023-08-24T15:19:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\"},\"wordCount\":1570,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/businessfinancenews.com\/#organization\"},\"articleSection\":[\"Credit\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\",\"url\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\",\"name\":\"Debt Snowflake Method - Business Finance\",\"isPartOf\":{\"@id\":\"https:\/\/businessfinancenews.com\/#website\"},\"datePublished\":\"2022-01-18T18:14:11+00:00\",\"dateModified\":\"2023-08-24T15:19:07+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/businessfinancenews.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Credit\",\"item\":\"https:\/\/businessfinancenews.com\/category\/credit\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Debt Snowflake Method\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/businessfinancenews.com\/#website\",\"url\":\"https:\/\/businessfinancenews.com\/\",\"name\":\"Business Finance\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/businessfinancenews.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/businessfinancenews.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/businessfinancenews.com\/#organization\",\"name\":\"Business Finance\",\"url\":\"https:\/\/businessfinancenews.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp\",\"contentUrl\":\"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp\",\"width\":451,\"height\":59,\"caption\":\"Business Finance\"},\"image\":{\"@id\":\"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61\",\"name\":\"J Lipsky\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/businessfinancenews.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g\",\"caption\":\"J Lipsky\"},\"url\":\"https:\/\/businessfinancenews.com\/author\/lipsky\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Debt Snowflake Method - Business Finance","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/","og_locale":"en_US","og_type":"article","og_title":"Debt Snowflake Method - Business Finance","og_description":"Does Debt Snowflake Method Actually Work? Two of the most popular debt payoff strategies are&nbsp;debt snowball and debt avalanche.&nbsp;Debt snowball, popularized by Dave Ramsey, involves paying off your debts from the smallest to the largest balance. Debt avalanche involves paying off your debts from highest to lowest interest rate. There\u2019s another winter-related strategy you might ... Read more","og_url":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/","og_site_name":"Business Finance","article_published_time":"2022-01-18T18:14:11+00:00","article_modified_time":"2023-08-24T15:19:07+00:00","author":"J Lipsky","twitter_card":"summary_large_image","twitter_misc":{"Written by":"J Lipsky","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#article","isPartOf":{"@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/"},"author":{"name":"J Lipsky","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61"},"headline":"Debt Snowflake Method","datePublished":"2022-01-18T18:14:11+00:00","dateModified":"2023-08-24T15:19:07+00:00","mainEntityOfPage":{"@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/"},"wordCount":1570,"commentCount":0,"publisher":{"@id":"https:\/\/businessfinancenews.com\/#organization"},"articleSection":["Credit"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/","url":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/","name":"Debt Snowflake Method - Business Finance","isPartOf":{"@id":"https:\/\/businessfinancenews.com\/#website"},"datePublished":"2022-01-18T18:14:11+00:00","dateModified":"2023-08-24T15:19:07+00:00","breadcrumb":{"@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/businessfinancenews.com\/credit\/debt-snowflake-method\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/businessfinancenews.com\/"},{"@type":"ListItem","position":2,"name":"Credit","item":"https:\/\/businessfinancenews.com\/category\/credit\/"},{"@type":"ListItem","position":3,"name":"Debt Snowflake Method"}]},{"@type":"WebSite","@id":"https:\/\/businessfinancenews.com\/#website","url":"https:\/\/businessfinancenews.com\/","name":"Business Finance","description":"","publisher":{"@id":"https:\/\/businessfinancenews.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/businessfinancenews.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/businessfinancenews.com\/#organization","name":"Business Finance","url":"https:\/\/businessfinancenews.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/","url":"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp","contentUrl":"https:\/\/businessfinancenews.com\/wp-content\/uploads\/2022\/09\/2022-09-22_03-50-50.webp","width":451,"height":59,"caption":"Business Finance"},"image":{"@id":"https:\/\/businessfinancenews.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/21ba6b6b8408bf78c37aea43c61d3d61","name":"J Lipsky","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/businessfinancenews.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/338dd21f6226446418ff37e1d0426ee2?s=96&d=mm&r=g","caption":"J Lipsky"},"url":"https:\/\/businessfinancenews.com\/author\/lipsky\/"}]}},"taxonomy_info":{"category":[{"value":44,"label":"Credit"}]},"featured_image_src_large":false,"author_info":{"display_name":"J Lipsky","author_link":"https:\/\/businessfinancenews.com\/author\/lipsky\/"},"comment_info":0,"category_info":[{"term_id":44,"name":"Credit","slug":"credit","term_group":0,"term_taxonomy_id":44,"taxonomy":"category","description":"<div>\r\n\r\nCredit repair companies help you dispute inaccuracies on your reports with credit bureaus and creditors to help improve your credit score, while also helping you understand your credit standing. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be hard to do on your own.\r\n\r\nCredit repair companies will start by pulling your credit reports from the three major credit bureaus\u2014TransUnion\u00ae, Experian\u00ae and Equifax\u00ae. Since some credit agencies only report to one credit bureau, there may be errors on one report that won\u2019t appear on another, which is why it\u2019s important for credit repair companies to pull all three.\r\n\r\nWhen reviewing your credit reports, credit repair companies will look for the following errors:\r\n<ul>\r\n \t<li>Incorrect inquiries<\/li>\r\n \t<li>Inaccurate accounts<\/li>\r\n \t<li>Accounts that don\u2019t belong to you<\/li>\r\n \t<li>Duplicate accounts<\/li>\r\n \t<li>Delinquencies and derogatory marks<\/li>\r\n \t<li>Fraudulent activity<\/li>\r\n \t<li>Missing accounts that should be listed on your reports<\/li>\r\n<\/ul>\r\nOnce they\u2019ve identified these errors, they may ask for extra documentation to help prove the inaccuracies. With all the necessary information, they\u2019ll file the disputes and work with the credit bureaus to resolve the issues.\r\n\r\nThese companies will also help answer any questions you may have about your credit and once the errors have been disputed, they\u2019ll provide you with information on strategies you can use to help keep a healthy credit profile.\r\n<h3><span id=\"How_to_know_if_a_credit_repair_company_is_legitimate\">How to know if a credit repair company is legitimate<\/span><\/h3>\r\nWhile there are many legitimate credit repair companies the industry is also filled with its fair share of scammers. Doing thorough research on the companies you\u2019re looking to work with can save you time and money. To verify a credit repair company\u2019s legitimacy, you\u2019ll need to know what they\u2019re legally allowed to do and not do.\r\n\r\nThe Credit Repair Organizations Act (CROA) was put into place to help regulate the industry and protect consumers from illegal credit repair scams. Under CROA, credit repair companies are not allowed to guarantee the removal of negative items, cannot offer to create a new credit profile for you and cannot accept payment until after the services have been completed.\r\n\r\nWhen determining good credit repair companies from bad ones, look out for the following red flags:\r\n<ul>\r\n \t<li><strong>They request payment up front.<\/strong>\u00a0All payments must be made after the services have been completed.<\/li>\r\n \t<li><strong>They\u2019re unable to answer your questions.<\/strong>\u00a0Legitimate companies will provide answers to any and all questions that may arise.<\/li>\r\n \t<li><strong>They ask you to lie about your credit history.<\/strong>\u00a0Under CROA, companies are prohibited from asking you to lie or misrepresent your information.<\/li>\r\n \t<li><strong>They fail to provide information.<\/strong>\u00a0Reputable companies will always inform you of your rights as a consumer.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">Legitimate credit repair companies will be up front about how they can assist you and what services they think will work in your favor. They\u2019re here to help you understand your credit standing and want to work with you to improve your credit score.<\/p>\r\n\r\n<h3><span id=\"How_much_does_it_cost_to_repair_my_credit\">How much does it cost to repair my credit?<\/span><\/h3>\r\nHow much you pay for credit repair will depend on the company and your credit situation. Some consumers may only need a few errors disputed, while some may require more in-depth credit repair services. How you pay for these services vary from company to company, as each has its own payment structure. Some companies may require you to pay a one-time flat fee, pay per derogatory mark or charge a monthly payment.\r\n\r\nCredit repair companies cannot charge you until the work outlined in your contract is complete. The contract should also outline your right to cancel without penalty should you wish to do so.\r\n\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">We offer a variety of service levels to support every budget and need. Our credit repair service levels range from $95.95 to $139.95 and each option offers unique coverage to fix errors on your credit report.<\/p>\r\n\r\n<\/div>","parent":0,"count":18,"filter":"raw","cat_ID":44,"category_count":18,"category_description":"<div>\r\n\r\nCredit repair companies help you dispute inaccuracies on your reports with credit bureaus and creditors to help improve your credit score, while also helping you understand your credit standing. Since some credit situations are more complex than others, credit repair companies can help you resolve credit issues that would otherwise be hard to do on your own.\r\n\r\nCredit repair companies will start by pulling your credit reports from the three major credit bureaus\u2014TransUnion\u00ae, Experian\u00ae and Equifax\u00ae. Since some credit agencies only report to one credit bureau, there may be errors on one report that won\u2019t appear on another, which is why it\u2019s important for credit repair companies to pull all three.\r\n\r\nWhen reviewing your credit reports, credit repair companies will look for the following errors:\r\n<ul>\r\n \t<li>Incorrect inquiries<\/li>\r\n \t<li>Inaccurate accounts<\/li>\r\n \t<li>Accounts that don\u2019t belong to you<\/li>\r\n \t<li>Duplicate accounts<\/li>\r\n \t<li>Delinquencies and derogatory marks<\/li>\r\n \t<li>Fraudulent activity<\/li>\r\n \t<li>Missing accounts that should be listed on your reports<\/li>\r\n<\/ul>\r\nOnce they\u2019ve identified these errors, they may ask for extra documentation to help prove the inaccuracies. With all the necessary information, they\u2019ll file the disputes and work with the credit bureaus to resolve the issues.\r\n\r\nThese companies will also help answer any questions you may have about your credit and once the errors have been disputed, they\u2019ll provide you with information on strategies you can use to help keep a healthy credit profile.\r\n<h3><span id=\"How_to_know_if_a_credit_repair_company_is_legitimate\">How to know if a credit repair company is legitimate<\/span><\/h3>\r\nWhile there are many legitimate credit repair companies the industry is also filled with its fair share of scammers. Doing thorough research on the companies you\u2019re looking to work with can save you time and money. To verify a credit repair company\u2019s legitimacy, you\u2019ll need to know what they\u2019re legally allowed to do and not do.\r\n\r\nThe Credit Repair Organizations Act (CROA) was put into place to help regulate the industry and protect consumers from illegal credit repair scams. Under CROA, credit repair companies are not allowed to guarantee the removal of negative items, cannot offer to create a new credit profile for you and cannot accept payment until after the services have been completed.\r\n\r\nWhen determining good credit repair companies from bad ones, look out for the following red flags:\r\n<ul>\r\n \t<li><strong>They request payment up front.<\/strong>\u00a0All payments must be made after the services have been completed.<\/li>\r\n \t<li><strong>They\u2019re unable to answer your questions.<\/strong>\u00a0Legitimate companies will provide answers to any and all questions that may arise.<\/li>\r\n \t<li><strong>They ask you to lie about your credit history.<\/strong>\u00a0Under CROA, companies are prohibited from asking you to lie or misrepresent your information.<\/li>\r\n \t<li><strong>They fail to provide information.<\/strong>\u00a0Reputable companies will always inform you of your rights as a consumer.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">Legitimate credit repair companies will be up front about how they can assist you and what services they think will work in your favor. They\u2019re here to help you understand your credit standing and want to work with you to improve your credit score.<\/p>\r\n\r\n<h3><span id=\"How_much_does_it_cost_to_repair_my_credit\">How much does it cost to repair my credit?<\/span><\/h3>\r\nHow much you pay for credit repair will depend on the company and your credit situation. Some consumers may only need a few errors disputed, while some may require more in-depth credit repair services. How you pay for these services vary from company to company, as each has its own payment structure. Some companies may require you to pay a one-time flat fee, pay per derogatory mark or charge a monthly payment.\r\n\r\nCredit repair companies cannot charge you until the work outlined in your contract is complete. The contract should also outline your right to cancel without penalty should you wish to do so.\r\n\r\n<\/div>\r\n<div>\r\n<p class=\"after-tip\">We offer a variety of service levels to support every budget and need. Our credit repair service levels range from $95.95 to $139.95 and each option offers unique coverage to fix errors on your credit report.<\/p>\r\n\r\n<\/div>","cat_name":"Credit","category_nicename":"credit","category_parent":0}],"tag_info":false,"_links":{"self":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8365"}],"collection":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/comments?post=8365"}],"version-history":[{"count":3,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8365\/revisions"}],"predecessor-version":[{"id":25488,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/posts\/8365\/revisions\/25488"}],"wp:attachment":[{"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/media?parent=8365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/categories?post=8365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businessfinancenews.com\/wp-json\/wp\/v2\/tags?post=8365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}