💰 Debt Payoff Strategy

Prepared on: [Date] Total Debt: $XX,XXX in X accounts Weighted Average Interest Rate: XX.X% Monthly Payment Budget: $X,XXX (minimums: $X, extra: $X)

Executive Summary

• Recommended Strategy: [Avalanche / Snowball / Hybrid]
• Time Until Payoff: XX months
• Total Interest Paid: $XX,XXX
• Interest Savings Compared with Minimum Payments: $XX,XXX
• First Debt Paid Off: [Name] in X months

Current Debt Inventory

DTI Ratio Analysis (Debt/Income)

• Front-end DTI (housing): X% (target <28%)
• Back-end DTI (all debts): X% (target <36%)
• Status: ✅ Healthy / ⚠️ Caution / 🚨 Critical

Strategy Comparison

Avalanche Method

• Order: [Debt 5 → Debt 2 → Debt 1 → Debt 3 → Debt 4]
• Months until payoff: XX
• Total interest paid: $X,XXX
• First payoff: [debt name] in X months

Snowball Method

• Order: [Debt 1 → Debt 3 → Debt 2 → Debt 5 → Debt 4]
• Months until payoff: XX
• Total interest paid: $X,XXX
• First payoff: [debt name] in X months

The Difference

• Avalanche saves: $X,XXX in interest
• Snowball delivers faster wins: X months earlier at the first payoff
• My Recommendation: [Strategy] because [reason aligned with the user's goal]

Monthly Payment Plan (Recommended Strategy)

Consolidation and Refinancing Opportunities

Opportunity 1: [Balance Transfer / Personal Loan / Refinancing]

• Target debt(s): ...
• Current rate(s): X%
• Potential new rate: X%
• Interest savings in X months: $X,XXX
• Eligibility: [credit score requirement]
• Risks/Pitfalls: [promotional APR expiration, balance transfer fees, loss of federal protections]
• Action: ...

Opportunity 2: ...

Quick Wins (Week 1)

1. Call card issuer X and request a rate reduction (script provided below)
2. Set up automatic payments for all minimums (avoid late fees + small APR discount)
3. Move the extra $X to the highest-priority debt this week
4. Open a 0% balance transfer card application at [bank]
5. Renegotiate vehicle insurance to free up $X/month for debt

Fee Reduction Call Script

"Hello, I’ve been a customer for X years. I’d like to request a lower APR on my account. I’ve received offers from [competitor] at X% and would like to stay with you if possible. Can you lower my rate?"

Success rate: ~30-40%. Even a 2% reduction on $5K saves $100+/year.

After Payoff — Redirect Payments to Build Wealth

In month XX, once you're debt-free, you'll have $X,XXX/month freed up. Allocation plan:

• $X for an emergency fund (up to 6 months of expenses)
• $X for retirement (401k match max → Roth → 401k)
• $X for a taxable brokerage account
• $X for the next goal (home, business, family)

Risks and Points to Watch

• Credit card debt buildup (close 0 cards, lower limits)
• Expiration date of the 0% promotional APR (mark your calendar 60 days in advance)
• Income interruption (maintain an emergency fund of at least 1 month)
• Co-signers / joint debts in divorce/separation scenarios

Behavioral Anchors

• Track on a visible chart (debt thermometer)
• Celebrate each payoff (small reward, NO new debt)
• Inform the person in charge
• 5-minute weekly check

DISCLAIMER: For educational/informational purposes only. This does not constitute financial advice. Consult a licensed financial advisor before making decisions.

Output Standards

• Display the complete month-by-month table (at least 12-24 months)
• Compare both strategies using actual dollar differences
• Address behavioral and mathematical considerations
• Stock-specific phone scripts and product names
• Federal student loan protections always flagged before refinancing

Delivery

After writing FINANCE-DEBT.md:

1. State the recommendation and the savings
2. Top 3 actions this week
3. Suggest /finance budget if the extra payment budget is tight
4. Suggest /finance analyze for a holistic overview

DISCLAIMER: For educational/informational purposes only. This does not constitute financial advice. Consult a licensed financial advisor before making decisions.

--- skills/finance-fire/SKILL.md ---

name: finance-fire description: FIRE (Financial Independence Retire Early) Calculator covering Lean FIRE, Fat FIRE, Coast FIRE, and Barista FIRE. Calculates your FI number, years to FIRE based on savings rate, geographic arbitrage opportunities, sequence-of-returns risk, and withdrawal strategies (4% rule, dynamic withdrawal, guardrails). Use when the user says "/finance fire", "financial independence", "early retirement", "FI number", "Coast FIRE", or asks about early retirement.