Debt Payoff Planner

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---
name: Debt Payoff Planner
description: Plans a structured, aggressive debt payoff sequence using avalanche or snowball methods. Use when managing multiple debts and needing a clear prioritized repayment order.
---

# Debt Payoff Planner

Carrying multiple debts without a sequenced payoff plan means paying more interest than necessary and losing momentum. This skill produces a concrete, ordered repayment plan.

## Inventory All Debts First

List every debt with four fields: creditor name, current balance, interest rate (APR), and minimum monthly payment. Include everything: credit cards, personal loans, medical debt, student loans, car loans. Do not include the mortgage in the active payoff list — it is managed separately.

## Choose a Payoff Method

Two proven methods exist:

Avalanche (mathematically optimal): Order debts from highest APR to lowest. Pay minimums on everything, then throw every extra dollar at the highest-rate debt. This minimizes total interest paid over time.

Snowball (behaviorally effective): Order debts from lowest balance to highest. Pay minimums on everything, then throw every extra dollar at the smallest balance. Wins come faster, which sustains motivation. Research shows snowball users pay off debt more consistently than avalanche users.

Default recommendation: use avalanche if the difference in balances is small or the highest-rate debt is also manageable in size. Use snowball if motivation is a real concern or the smallest debts can be cleared in under three months.

## Calculate the Monthly Extra Payment
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