Simon has found himself in a difficult situation as his rent has risen to $490 per week. He owes $23,000 on his credit card (5% of the balance to be paid each month), has a study debt of $24,000 and makes monthly repayments of $380 on a personal car loan (principal balance of $25,000). His basic living expenses are currently about $14,000 per annum, but he often exceeds this amount by overspending on luxury items.

Simon is finding it hard to pay his bills. In addition, there has been an interest-rate increase, meaning that the rate on the credit card is increasing to 22% per annum (interest calculated daily). Simon has only $600 in his bank account. His only assets are his car, furniture, jewellery and clothes. Simon is 32 years old and earns around $75,000 before tax.

As Simon's advisor, what recommendations can you make?