When Do You Snowflake

iVillage Member
Registered: 09-19-2012
When Do You Snowflake
9
Wed, 01-02-2013 - 10:10am

Hey everyone.  I was wondering when you snowball.  Do you do it at the end of the week, month or pay period?  For instance, I get paid every other week.  Would you snowball the day of the next check?  Some other time all together even?  I am curious when everyone snowballs their debt.  I have been saving for a few months and I was thinking of putting a little more towards it but decided to snowball my debt instead.  I have 3300 in savings so I am good for the time being.

Thanks!

Michele

iVillage Member
Registered: 12-16-2010
Thu, 01-10-2013 - 12:10am

 I always snpwflake on our paydays  2x each month and  I  also love to do little snowflakes all throughout the month  ...sometimes $5 at a time . I do it whenever I don't spend money on something.  Like if the Kiddies make a b-day card for a family member or put back an item in grocery store. If I decide not to go somewhere I put $4 .. gal  of gas right to CC.  It all adds up. 

iVillage Member
Registered: 04-16-2008
Sun, 01-06-2013 - 2:13pm

Not sure if getting higher credit scores is a priority to you at this time.  I found out if I pay my credit cards in smaller chunks 4 - 5 times a month vs. once a month (either way, I don't keep a balance), my credit scores go up slightly. 

What happens is they take a snap shot of your credit card balance when they calculate your scores.  Even though I pay the entire balance every month, at any given time, if the balance is higher than, say, 10% of the available credit, my scores would often drop 5 to 10 points.  And vice versa. 

At this point I don't really care about that 10-point difference as I have no plans of applying for a loan.  (Nor would it affect insurance rates as I already have very competitive rates with a professional organization).  However, I just thought it is something interesting to share.  So if it is not too inconvenient, and if improving credit scores is one of your goals, I would snowflake as often as possible.

iVillage Member
Registered: 04-10-2003
Fri, 01-04-2013 - 9:35am
Hello! Nice to "see you". I am a strange snowflaker :) I snowflake every two week pay period (I get paid biweekly as well). I budget what needs to be paid out of each paycheck and then flake the extra. Then I also flake as an extra comes up. For example, I budget $280 for insurance but the bill comes in at $273 so when the bill comes in . . . I send the extra $7 somewhere. (I also "flake" towards my sinking funds as well in order to ensure that I have enough to cover those one offs that come up as well!)

Bex -

iVillage Member
Registered: 11-14-2008
Thu, 01-03-2013 - 12:05pm

A good time to flake is in the pay period with out the big expense in it, your rent/mortgage. It hurts less. Come up with an amount of what is left over that you want to flake and stick to it, otherwise it just gets spent.  I'm excited for you and your journey! Good Luck!

iVillage Member
Registered: 09-19-2012
Thu, 01-03-2013 - 10:25am

Hi Marie:

Yes, I meant snowflakes, not snowballs.  lol  I was trying to be all fancy with my lingo and then I went and messed it up. 

Thank you for your reply. 

Michele

iVillage Member
Registered: 09-19-2012
Thu, 01-03-2013 - 10:25am

Hi Marie:

Yes, I meant snowflakes, not snowballs.  lol  I was trying to be all fancy with my lingo and then I went and messed it up. 

Thank you for your reply. 

Michele

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iVillage Member
Registered: 10-02-2011
Wed, 01-02-2013 - 7:57pm

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iVillage Member
Registered: 05-08-2006
Wed, 01-02-2013 - 3:59pm
I read your reintroduction post. Hurricane Sandy was certainly life changing for a lot of people...sounds like you are making it positive. Great job on saving the $3300. That is a great emergency fund. If you have a budget, you can predict what you might have available to snowball, and you can send it with your regular payment. Do you have a plan of what you are going to pay down first? Have you ranked your debt by interest rate or amount owed? I think it makes send to tackle highest interest first, but some people like to mix small and large amounts so they get a feeling of meeting a goal more often. It can also be worthwhile to transfer balances to lower interest cards, but you have to do the math to make sure because there is often a transfer fee. And if you aren't behind on any debt, it is always worth it to call and negotiate a lower rate. Ask to speak to at least one supervisor, and do this not as someone who needs help but who is a valued customer who deserves it. That takes nothing but time...and can really pay off because credit card interest rates are outrageous at a time when money in the bank is paying half a percent....
iVillage Member
Registered: 12-31-2010
Wed, 01-02-2013 - 1:46pm
Just so I understand what you are asking, my assumption is that you are paying the minimums on all debts, and have been putting anything extra into savings. Now you want to target a certain debt and add "snowflakes" to the payment to pay it off faster, then when you are done with that debt, you will "snowball" that payment, the extra amount and to your next target debt payment. Whatever works for you, is the answer to "when" to pay it. Maryann would have said to pay it right after the regular payment was due, but before they calculate the next interest payment to get a few cents of no interest in there. Personally, we just pay extra when the payment is due, and if we have a bit extra at the end of the month, we put it on the target debt. For those without the $1000 baby emergency fund, my biggest tip (besides shopping with cash) is to get that fund built up before putting any extra on any debt, so you can cover Murphy when he undoubtedly shows up. Oh, Happy New Year! -Marie
#Marie