Debt Payoff Plan

Overview

Helps you create a structured debt payoff plan using either the avalanche method (highest interest rate first) or snowball method (smallest balance first). Identifies your current debt payments, calculates extra payment capacity from your budget, and generates a month-by-month payoff schedule.

Wilson Tools Used

• transaction_search — find recurring debt payments (loans, credit cards, lines of credit)
• spending_summary — calculate total income vs. expenses to find extra payment capacity

Workflow

1. Run transaction_search with query: "payment OR loan OR credit card OR interest OR minimum" and months: 3 to identify recurring debt payments.
2. Group the results by creditor/lender to determine your current monthly payment for each debt.
3. Ask the user to provide for each debt: current balance, interest rate (APR), and minimum payment. Wilson cannot determine balances from transactions alone.
4. Run spending_summary for the last 3 months to calculate average monthly income and average monthly expenses.
5. Compute extra payment capacity: (average monthly income) - (average monthly expenses) - (sum of minimum payments already in expenses). If this is negative, flag that the user is overspending.
6. Generate an Avalanche Plan — order debts by interest rate descending. Apply all extra payment capacity to the highest-rate debt while paying minimums on all others.
7. Generate a Snowball Plan — order debts by balance ascending. Apply all extra payment capacity to the smallest balance while paying minimums on all others.
8. For each plan, produce a month-by-month schedule in this format: