It’s pretty much easy to take loans nowadays, but to pay them off, well, that wasn’t very easy to pay off earlier and they aren’t even easy to pay off now as well. Unpaid debts become a big burden that has a pretty adverse effect on a person’s life. Considering the fact that there are number of methods that talk about ways of covering up a person’s debt, easily and in the shortest possible span, it can be said that people do somewhat use them.
But there exists a difference between talking about methods and actually following them. Some methods that talk about the ways of paying off debts easily are:
- Snowball method
- Snowflake method
- Stack method
- Ladder method
All these method talk of very efficient ways of paying off ones’ debts but the one that can be followed by each and every person with utmost ease is the Snowflake Method.
Note: Make sure you take your loan from a licensed money lender who accepts more than the minimum monthly payment, if you’re willing to pay it.
What’s the Snowflake Method?
The Snowflake Method is very easy to understand and equally easy to apply it to your daily routine. In the simplest words, the Snowflake method talks about bringing together multiple small changes to make one big impact.
If you aspire to pay your debts as soon as possible so as to prevent the extra interest to get added upon the already high debt, you can get used to this Snowflake method and get it done even without realizing much of anything.
The sole purpose of this method is to allow you to make many small savings. Saving the money that would have otherwise been spent from your pocket without a reason. Or saving it from something that can be done a cheaper cost. It’s more like working hard in your life. You don’t actually realize that you are making a big impact until and unless you finally see that big result coming out of it all.
The Snowflake method suggests you to save pennies from your day-today activity. Suppose you’re out with a friend and you had a mood of having an ice-cream that would probably cost you around two dollars. Here, if you’re following the Snowflake method, you’d skip the idea of having an ice-cream worth two dollars and rather have a cheaper one. That wouldn’t give you any kind of pain, but you see… there… you just save some bucks for your debt. Well, you would ask, what difference would half or one dollar make to your debt that is of five thousand?
Here’s the answer. Suppose you have to pay a debt of $5000 in a three years’ time to Easy Credit. In that three years, you’d surely be going out to have an ice-cream or just any other thing for that matter. What if you save a dollar every time? Well, you’ll have an amount that will be of some value in front of the debt size. Did it really give you any pain? No, it didn’t. You didn’t really even realize it and there you have a few hundred bucks saved up.
Consider how many such activities you keep indulging in from day to day. Be it groceries, movies, clubbing, shopping, gifts or anything. You can easily save lot and lots of money. It may even lead you to get off your debt much before the zero-debt day arrives. The idea is very simple. Save small to have a big saving with yourself.
We’re talking about this because it works very efficiently and doesn’t need much extra efforts from you. It’s all about you and your willingness to save. Nothing else in between.
If you’re already thinking of it as a good method but can’t figure out as to where and how you need to save your money, here are a few things you’d like to know. Paying debt is a big task. If it takes a little discomfort, be ready to deal with it.
Take a look at these simple ways of saving money
– If you have any subscriptions on Netflix or Amazon or any other site, understand that they are not as important as you being free of the burden of debt. Get them cancelled. That’ll save you a lot every month.
– Try cooking at home rather than eating outside on a regular basis.
– You can also use your unused coupons while you go for grocery shopping.
– If you wish, you can also do some small part time jobs which take only an hour or two of your days’ time. This will earn you
a considerable amount.
– If you have anything in your head apart from this as we only mentioned a very small list, you can do that as well. Do anything that can save or earn you some cash in bits and pieces.
– You can join them together to make a good sum.
Always remember, do not set very high hopes with this method. Be happy with the small changes that you see and keep working towards your big goal. You also need to make sure of one more thing and that is, that you keep paying your monthly payment to get off of the debt. Suppose your monthly payment is of $120, add up all that you saved in the last month, be it $20, $10 or lesser and pay them off. If you keep your savings with yourself, there will be something that would come up and you’ll have you spend that savings there. So, get done with it as soon as you get the chance. No compromises.
An extra treat
By the time you’ll be done paying off your debts, you’ll have surely gotten into the habit of saving penny after penny to make a good amount. Now that you debts are paid, you can do one thing with these saving. You can invest the small amounts you saved into ETFs and Mutual Funds. This will help you grow your overall wealth as you keep saving from your daily activities. A double plus for you. What’s stopping you now? It’s time to get started!! You can also visit Credit Excel Capital for more financial tips.