I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus?

The Moneyist

‘I previously drove a fully loaded BMW X7, and driving a used Lexus feels like a big drop’

Last Updated: May 16, 2025 at 7:30 p.m. ET
First Published: May 15, 2025 at 5:20 a.m. ET

Dear Quentin,

After four years of separation and divorce, I finally am officially divorced and I’m happier than ever. But it cost me financially. Then six weeks ago, a man hit and totaled my almost-paid-off vehicle. The insurance gave me a $30,000 check. I have about $50,000 in credit-card debt from my divorce.

I think I should pay off the debt with my $30,000 cash and use a loan from my credit union to purchase a vehicle. The one I saw today is a preowned vehicle for $37,000, but my neighbor will give me $5,000 off, so it will cost me $32,000.