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23 January
I’m inheriting $250K. Will paying off my student loans and credit-card debt hurt my credit score?

The Moneyist

‘I will get $250,000 from the proceeds of the sale of a family home’

“I want to pay off my student loans and credit-card debt.” (Photo subject is a model.)
“I want to pay off my student loans and credit-card debt.” (Photo subject is a model.) Photo: Getty Images/iStockphoto

Dear Quentin,

I will get $250,000 from the proceeds of the sale of a family home. I want to pay off my student loans and credit-card debt. If I wipe out all my students and credit-card debt, will that negatively affect my score?

Clearing My Debts