<prompt> Human: Hey guys, I just got 5000 from a settlement from a lawsuit I was in. I know its not much but for me its a good amount. Currently I have about 2500 left on a car payment, and about 100 worth of credit card debt. My questions are should I take the 2600 roughly and pay off my entire debt? Id like to do something with this money other than spend it on myself, Id rather do something where I can make money back if possible.  <response>: Depending on the type of lawsuit you may owe taxes on that money. So, figure out if you are going to owe taxes then set the tax money aside if needed, then pay off debt. Or if you think you are going to get a big enough refund to cover the additional tax, spend all of the money paying of debt and recognize that your refund will be less. Article about legal settlements and taxes below. 