Hi Suze, I got in a car accident and my car was totaled. I received $4,500 after the loan was paid off and I don't know what to do with the money. My friend is letting me borrow a car right now so I have just a couple months to decide. I am 29 years old and I have only $1,500 in liquid savings, and $12,000 in 401k. I have $10,000 worth of credit card debt and I am in school so my school loan is small but growing. My credit card with a balance of $5,000 is about to go up from the introductory interest rate to 18%. The other card is $4,000 with 10% interest and $600 on a 0% interest.

My question is wither I should
A) put the money in savings for my 8 month emergency fund,
B) pay down my credit card with the large interest rate, or
C) use the money as a down payment on a car so that I don't have a car loan or have a very small car loan?
Or D) Amazing Suze advice that I have not thought of?

It seems to me that a car loan with a 5% interest rate would be better than a credit card with 18% but I have no clue what to do! Please help! Thank you!