Foundations — Debt as a Design Material

Core principles and the Engineer → Bet → Track → Transform loop.

Debt Engineering reframes “debt” from a burden to a material for learning. It treats trade‑offs as deliberate design choices, made visible and instrumented.

The loop:

  1. Engineer — make debt explicit, measurable, and intentional.
  2. Bet — articulate hypotheses, stakes, and expected learning.
  3. Track — measure learning yield, carry cost, and risk exposure.
  4. Transform — repay, refinance, or let mature; capture reusable insight.

Principles:

  • Visibility over vagueness — instrument where risk accumulates.
  • Learning yield over vanity metrics — optimize for understanding gained.
  • Optionality over certainty — keep reversibility and option value in view.