After developing some workable ideas on how Bill might improve his monthly budget, Juanita needs to discuss Bill's three largest debts: Left college with debt on four credit cards totaling $7,000 and now has $15,000 in debt at an interest rate of 21.9%. Making minimum payment of $300/month. Bill said he was prioritizing this bill since it would have the largest impact on his credit score. He would like to pay off his credit card within 5 years so he can start saving for other things. Incurred student debt of $35,000 (which is about average for recent college graduates), with a 4.45% interest rate for the 10 year term. He has missed his last three payments. Bill had heard that there was a government plan to forgive student loans after 10 years so he wasnt too concerned about missing those payments. Besides, since these were federal loans they wouldnt affect his credit score. Purchased a new mini-Cooper as a present to himself after graduating from college and has a $20,000 loan outstanding at 7.99% interest over a 5 year term. He hasnt made a payment in three months. Bill had resigned himself to the fact that he could always just sell the car and all would be good.

Discuss What steps/actions Bill needs to take to address these three items?