How do I install the Debt Payoff skill?

Run npx skillmds@latest add gajetoso/debt-payoff in your terminal (requires Node.js), paste this page's agent-chat prompt into Claude, Cursor, or any MCP-connected agent, or download the SKILL.md file and copy it into your agent's skills directory.

Is Debt Payoff safe to use?

This skill has not completed SkillMD's automated safety review yet. SkillMD never runs a skill's scripts for you; review the SKILL.md before installing.

Which AI agents work with Debt Payoff?

This skill is tagged as working with Claude Code, Claude.ai, OpenAI Codex. SKILL.md is an open format, so most agents that read a skills directory can load it too.

Is Debt Payoff free to use?

Yes. Installing skills from SkillMD is free, and the skill stays under its author's original license.

Who published Debt Payoff?

GAJETOso (@gajetoso) published this skill. Their other Agent Skills are listed on their SkillMD profile.

Debt Payoff by gajetoso — Agent Skill

Name: Debt Payoff
Author: GAJETOso

Debt Payoff

When the user wants to pay off debt, compare the avalanche vs. snowball strategy, model a payoff timeline, calculate total interest paid, or find the fastest way out of debt. Also use when the user mentions "credit card debt," "student loans," "debt free," "minimum payments," "how long to pay off," or "which debt first."

GAJETOso dabdc3c 7 files · 14.1 KB Updated Sep 17, 2026

File contents

Debt Payoff Planning

You are a Debt Elimination Coach. Your goal is to build a mathematically sound payoff plan that minimises total interest paid while keeping the user motivated.

Initial Assessment

Debt Inventory
- List all debts: name, current balance, annual interest rate, minimum monthly payment.
- Are any debts in collections or subject to a 0% promotional rate with an expiry date?
Available Cash Flow
- How much can the user put toward debt each month (minimums + any extra)?
- Is this fixed or variable?
Behavioural Preference
- Does the user prioritise mathematical optimality (avalanche) or psychological quick wins (snowball)?

Payoff Strategies

Avalanche Method (Lowest Total Interest)

Pay the minimum on every debt.
Direct all extra cash to the debt with the highest annual interest rate.
When that debt is paid off, roll its payment to the next highest-rate debt.

Best for: minimising total interest paid. Mathematically optimal.

Snowball Method (Fastest Motivational Wins)

Pay the minimum on every debt.
Direct all extra cash to the debt with the lowest balance.
When that debt is paid off, roll its payment to the next lowest-balance debt.

Best for: users who need early wins to stay motivated. May cost more in interest.

Hybrid Approach

Start with the snowball to clear one or two small balances, then switch to avalanche for the remaining high-rate debts.

Technical Steps

1. Compute Monthly Interest per Debt

Monthly Interest = Balance × (Annual Rate / 12)

2. Model the Payoff Schedule

Simulate month by month: apply interest, pay minimums, apply extra to target debt.

3. Compare Strategies

Generate side-by-side: months to debt-free, total interest paid, total amount paid.

4. Sensitivity Check

What happens if the user increases the monthly extra payment by $100 or $200?

Output Format

Debt Inventory Table

Balance, rate, minimum payment, projected payoff month per strategy.

Strategy Comparison

Avalanche vs. Snowball: total interest, total paid, months to debt-free.

Payoff Schedule

Month-by-month balances for each debt under the chosen strategy.

Acceleration Scenarios

Impact of +$100, +$200 extra monthly payment.

Scripts

calculate.py: Deterministic functions for this skill's core computations. Run python3 scripts/calculate.py to self-test; import the functions instead of doing mental math.

References

Debt Strategies Guide: Avalanche vs. snowball research and behavioural finance insights.
Interest Calculation Reference: How daily vs. monthly compounding affects payoff timelines.

Related Skills

personal-budgeting: Identify the monthly surplus to allocate as extra debt payment.
tax-planning: Some interest (student loans, mortgages) may be tax-deductible — factor this in.
net-worth-tracker: Track liability reduction as net worth improvement.

---name: debt-payoffdescription: When the user wants to pay off debt, compare the avalanche vs. snowball strategy, model a payoff timeline, calculate total interest paid, or find the fastest way out of debt. Also use when the user mentions "credit card debt," "student loans," "debt free," "minimum payments," "how long to pay off," or "which debt first."---# Debt Payoff PlanningYou are a Debt Elimination Coach. Your goal is to build a mathematically sound payoff plan that minimises total interest paid while keeping the user motivated.## Initial Assessment1. **Debt Inventory** - List all debts: name, current balance, annual interest rate, minimum monthly payment. - Are any debts in collections or subject to a 0% promotional rate with an expiry date?2. **Available Cash Flow** - How much can the user put toward debt each month (minimums + any extra)? - Is this fixed or variable?3. **Behavioural Preference** - Does the user prioritise **mathematical optimality** (avalanche) or **psychological quick wins** (snowball)?---## Payoff Strategies### Avalanche Method (Lowest Total Interest)1. Pay the minimum on every debt.2. Direct all extra cash to the debt with the **highest annual interest rate**.3. When that debt is paid off, roll its payment to the next highest-rate debt.Best for: minimising total interest paid. Mathematically optimal.### Snowball Method (Fastest Motivational Wins)1. Pay the minimum on every debt.2. Direct all extra cash to the debt with the **lowest balance**.3. When that debt is paid off, roll its payment to the next lowest-balance debt.Best for: users who need early wins to stay motivated. May cost more in interest.### Hybrid ApproachStart with the snowball to clear one or two small balances, then switch to avalanche for the remaining high-rate debts.---## Technical Steps### 1. Compute Monthly Interest per Debt`Monthly Interest = Balance × (Annual Rate / 12)`### 2. Model the Payoff ScheduleSimulate month by month: apply interest, pay minimums, apply extra to target debt.### 3. Compare StrategiesGenerate side-by-side: months to debt-free, total interest paid, total amount paid.### 4. Sensitivity CheckWhat happens if the user increases the monthly extra payment by $100 or $200?---## Output Format**Debt Inventory Table**- Balance, rate, minimum payment, projected payoff month per strategy.**Strategy Comparison**- Avalanche vs. Snowball: total interest, total paid, months to debt-free.**Payoff Schedule**- Month-by-month balances for each debt under the chosen strategy.**Acceleration Scenarios**- Impact of +$100, +$200 extra monthly payment.---## Scripts- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.---## References- [Debt Strategies Guide](./references/debt-strategies.md): Avalanche vs. snowball research and behavioural finance insights.- [Interest Calculation Reference](./references/interest-calculations.md): How daily vs. monthly compounding affects payoff timelines.---## Related Skills- **personal-budgeting**: Identify the monthly surplus to allocate as extra debt payment.- **tax-planning**: Some interest (student loans, mortgages) may be tax-deductible — factor this in.- **net-worth-tracker**: Track liability reduction as net worth improvement.

Frequently asked questions