Jack’s senior year, he took a spring break trip to Daytona Beach with his friends. He had not saved up funds for the trip, so he financed it with his brand new credit card. He had the time of his life giving no thought to all the items he charged as the week unfolded: jet skiing, parasailing, lavish evenings out, and a tattoo. He was appalled to realize the following month that his charges came to a total of $2,700. He was in no position to pay off the balance. He has been paying the $120 minimum payment each month. The card’s interest rate is at 21% APR. Although he has barely used his card, the balance seems to be growing. The card had become a lasting reflection of his spring break week in Florida: out of control.

In addition to the credit card, Jack’s student loans are coming due. He had 4 different federal student loans over the course of his undergraduate years, all at different interest rates. He is considering taking graduate classes as one option to defer starting to pay back his student loans. Given his situation, what advice do you have for Jack about his credit card debt and student loans?