Of all the big-ticket expenses Powerball winners pay off first, these are the most common for all jackpot winners.
Everyone dreams about winning a super-sized Powerball jackpot. And part of those day-dreaming exercises is all the debts you might look to pay off first with your massive windfall. Check out what past Powerball winners tend to pay off when they win. And maybe get inspired about what bills you’d take care of first, should you find yourself holding a winning Powerball ticket.
1. Credit Card Debts Go First
The average individual, according to recent financial stats, has just under $6,500 in credit card debt right now. In 2022, the collective amount of nationwide credit card debt exceeded a whopping $841 billion. It’s no wonder that Powerball winners seek to satisfy these debts first when they win sizable Powerball prizes. And because most credit cards charge lofty interest rates and overage penalties, there’s a sense of urgency to get these paid off immediately.
2. Mortgages and Home Purchases
Another big-ticket payoff most Powerball jackpot winners pursue is the mortgage. Paying off your house might be a huge financial burden lifted, knowing you no longer have steep monthly mortgage payments. And for those Powerball winners who rent, the first purchase they usually make is a new home. If the prize money is big enough, they’ll pay for those new homes outright, too.
3. Car Payments and New Cars
The average auto loan for Americans grew in 2022 by 7.7%, ranging between $22,000 and $35,000, depending on the area market. Past Powerball players who’ve won big will often take care of these loans as soon as they receive their winnings. And, of course, they’ll usually trade-in for a sweeter ride that they’ll then pay for outright.
4. College Education and Student Loans
Other Powerball jackpot winners will immediately satisfy their student loans. As one of the biggest burdens of today’s young adults, many individuals carry tens of thousands in student loan debt. And for those winners who don’t have student debt, they’ll often seek to unburden students in their families who carry heavy balances. It’s not uncommon for past winners to establish college savings with their millions in Powerball cash, too.
5. Tax Burdens
While not applicable to everyone, plenty of Americans owe the IRS or back taxes on their properties. A million-dollar windfall for those who have tax burdens would provide significant relief. And those who win big will almost always take care of their tax bills first.
6. Medical Bills and Health Expenses
A 2022 Kaiser Family Foundation report found that 6% of all U.S. adults owe $1,000 or more in medical expenses. And 1% of adults owe more than $10,000 in medical debt. Medical bills can be debilitating, especially for those who contend with chronic conditions or ongoing treatments. When Powerball players who have extensive medical debt win the Powerball jackpot, paying off those medical expenses is often a first order of business.
7. Bills of Family and Friends
Once their own debts are paid, many Powerball winners will branch out within their own families and friend circles to help others with their bills. Parents might pay off credit card debt, mortgages, or student loans of their grown children, for example. Just be mindful if you choose to do so with your winnings. Helping some might inspire conflict or lead to more demanding family and friends.
It's not uncommon for Powerball winners to donate portions of their winnings to charities or buy lavish luxury items for themselves. But those spending trends usually come after all the debts are paid. You might already have a mental roster of what bills you’d pay first. All you really need to do next is win, right?