Pay off credit card debt to better financial standing

Dear Rick:

I am in my late 20s and I’ve truthfully never been interested in my financial affairs. I have an IRA, some cash in the bank and I own my home. My house is worth approximately $250,000 and I have a $230,000 mortgage at four percent. I also have a little over $13,000 in credit card debt. The average interest rate on my credit cards is 20½ percent.

My grandparents plan to gift me $15,000, and they told me they want me to use the money to improve my financial situation. My grandfather is a big fan of yours and showed me a number of your columns and I’m hoping you can help me regarding what to do with the money. I’ve narrowed it down to three main options:

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