I have been picking at the dry skin on my thumb(s) and fingers since I was in middle school (I am knocking on the back door of 50 now) and I have tried EVERYTHING to stop.
Anyway, I recently discovered a lotion called Gloves in a Bottle. Its active ingredient is dimethicone which REALLY smoothes out the dry skin and keeps those irresistible "tags" from becoming a full-blown pick session. It is safe for your whole body, including your face and lips, and I have been using it for 6 mos now. (Aveeno also has a moisturizer that contains the same thing, btw.) It's about $12 a 8 oz bottle and worth every dime. A little goes a loo-ong way (I'm barely halfway thru my initial bottle). I have a bottle at work b/c I am a schoolteacher who washes hands often, and believe me, this product WORKS. I have tried everything from rich hand creams, overnight creams and gloves, Vaseline, shea butter products, you name it. Nothing comes close to this (it's all about the dimethicone).
I am not a rep for the company and have no financial interest whatsoever in whether or not you buy this product. I am a skin picker who finds that if I have fewer dry skin tags I pick less. Maybe you will, too.
My hands look great. No bloody craters along my thumbs, no bloody cuticles, no hiding my hands. I am still working on this compulsion, but my skin looks so much better.
Hang in there. This is a "coping skill" we've all developed to deal with our anxieties, and we're not freaks. You WILL get better, calmer and have peace - just take one day at a time!!!