Bad debt is typically debt that has high-interest rates – like credit card debt. With your cash windfall you can use one of two approaches to pay off your debt: 1. Debt Avalanche 2. Debt Snowball
If you don't have any high-interest debt, aka bad debt, the next logical sequence when approaching how to use a cash windfall is to start or enhance your emergency fund!
A cash windfall is a perfect time to go ahead and gut the kitchen and update it with all the modern gray-scale colors that are in! Use your cash windfall to pay cash for some home upgrades!