If you’re currently slugging away at settling a big debt, there is nothing that can give you a bigger psychological boost than being able to shave additional chunks off your obligations. The ‘Debt Snowflake’ method can make this possible.

We take a look at how the snowflake strategy works and how it can help you incrementally pay off debt quicker.

The Snowflake Plan

Debt snowflaking involves making supplementary micro-payments, in addition to your minimum monthly payments towards outstanding debts. These tiny windfalls may even be a few spare dirhams at a time. They may seem insignificant on their own, but much like real-life snowflakes, can mount up into fluffy white chunks of snow.

With a mountain of debt staring you in the face, paying an extra couple hundred dirhams may seem inconsequential. But these little payments do add up, and the results can end up surprising you. The smallest of extra payment brings you a step closer to your goal of becoming debt free. It benefits by lowering the amount of interest you incur each month, in addition to bringing down your minimum monthly payment as well as the term of your debt. Small payments also make debt settlement look realistic and are, therefore, more effective at getting the job done.

[Related: 5 Steps to Successfully Pay Off Your Debts]

Applying the Debt Snowflake Strategy

With the snowflake plan, you direct small, unexpected savings you may otherwise spend on little treats towards reducing your outstanding balances. You are required to capture tiny savings like the change left over from cash transactions over a period of time and make consequent payments to see a noteworthy dent in your overall debt balance. This self-control in aiming your savings in the right direction can help melt your debt away faster.

Also, snowflake stepdown technique works in combination with other repayment strategies like debt snowballing, debt consolidation and debt avalanche. That makes it extremely easy to incorporate into your current repayment plan.

Where to Look for the Snowflakes

A great thing about debt snowflaking strategy is that you can make a payment of any caliber at any time, as per your convenience.

Some sources that can help you fund your micro-payments include performance bonuses, birthday cash, inheritance money, accumulated leftover change, money earned from part-time jobs and leftovers from monthly budgets. You can also save a significant amount by keeping yourself up-to-date on offers at your grocer’s, and using 2 for 1 as well as discount vouchers available on multiple websites for various services, entertainment and dining options across the UAE.

It should be noted that the sooner you apply these savings to your debt, the better. This way it is easier to resist the temptation to spend it. The introduction of online payment of debts has eased the repayment process, so aim to transfer these amounts as soon as you receive them.

[Related: Save Money or Settle Debt – How to Prioritize?]