Welcome to the May 2016 Snowflaking Report!
As a reminder, I’m doing this once a month for the following reasons:
- We pay our minimum payment automatically around the 13th of every month, and I send our extra payment as soon as the payment posts to improve the likelihood that our Snowflaking payment will go entirely to the principal and not to interest.
- My monthly recaps are kind of long, so I’d like to take out some of the details to streamline them.
- Snowflaking will make or break the achievement of our 2016 Mintly Goal(s)!
What is Snowflaking?
“Snowflaking” can be defined as putting all of your extra income (often in small amounts) to your debt. For instance, if you do an odd job or have a side hustle, that money would go to your debt. If your mom sends you money for your birthday, you can send that money to your debt. If you get a refund on an item, that money can go to your debt. For more, see this.
Mintly Snowflaking 2016 by the numbers:
- $239 – amount needed per month to pay off all of H’s loans by our target of February 2017 (for more information on our debt, including the amount, please see this)
- $1091 – amount needed per month to pay off all four of our loans by our target of February 2017 (definitely our “stretch” goal!)
May 2016 Minimum Payment
I include this information because our snowflaking will continue to decrease the amount of interest we pay every time we make a payment, and tracking that decrease helps me see that we’re making a difference, even when it seems like we’re barely making a dent each month!
- $391.83 – minimum payment we sent
- $367.91 (94%) – amount that went to principal (last month: 69%)
- $23.92 (6%) – amount that went to interest (last month: 31%)
May 2016 Snowflaking:
- $2341.46 – total amount we sent (including $1492.86 that was budgeted)
- $2341.46 (100%) – amount that went to principal
- $0 (0%) – amount that went to interest
Current total student loan debt: $30,683.99 (including Navient and the Citibank card where we transferred about $9,000 of H’s loans)
May 2016 Snowflaking Breakdown:
- $1492.86 (budgeted – it was supposed to be $1500 but we had to squeak out a few more dollars for some other budget items this month)
- $100 – Swagbucks (<– referral link)
- $16.14 – Ebates (<– referral link)
- $28.46 – Chase Rewards for Mary Kay card (does not go to Ultimate Travel rewards so I cashed it in!)
- $575 – Citibank Thank You Points!
The amount of money that went to principal vs. interest this month on our minimum payment was way lower! Things are looking up! I have to say that I don’t love looking at a credit card balance of about $9,000 (and I’ll like it even less when our cash to credit debt ratio is worse after we send another big chunk of cash to Navient), but it’s worth it for now because we’re saving on interest. We don’t plan to make any big purchases where companies will be pulling our credit reports, so I’m willing to take the hit on my credit for the time being.
And… no. Still no contract. I might go crazy. H is supposed to talk to HR today. We’ll see what happens… but I have learned not to get my hopes up!