Debt Management

This gives you frameworks for debt payoff decisions, including avalanche versus snowball comparisons with actual interest calculations, refinancing breakeven analysis, and debt consolidation evaluation. It handles the math for debt-to-income ratios (important for mortgage qualification), payoff timelines with extra payments, and the opportunity cost analysis when deciding whether to pay down low-rate debt or invest instead. The worked examples show side-by-side comparisons with real numbers, like comparing three debts under both strategies to see the actual time and interest differences. It balances mathematical optimization with behavioral psychology, acknowledging that snowball might cost slightly more but keeps people motivated enough to actually finish.

skills.sh installs: 783
GitHub stars: 224
last updated: Aug 21, 2026

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Install

$ npx -y skills add joellewis/finance_skills --skill debt-management --agent claude-code

Installs into .claude/skills of the current project.

Files

Debt Management

Core Concepts

Debt Avalanche

Pay minimum payments on all debts, then direct all extra payment to the debt with the highest interest rate first:

Mathematically optimal: Minimizes total interest paid over the life of all debts
Once the highest-rate debt is paid off, the freed-up payment rolls to the next highest rate
Requires discipline — the highest-rate debt may also be the largest balance, meaning slow visible progress initially
Always saves money compared to snowball, though the difference varies by debt profile

Debt Snowball

Pay minimum payments on all debts, then direct all extra payment to the debt with the smallest balance first:

Psychologically effective: Quick wins build momentum and motivation
Research (Kellogg School) shows people are more likely to stick with snowball and actually become debt-free
May cost more in total interest than avalanche, but adherence is higher
Best for individuals who need motivational wins to stay committed