I know someone who paid off their credit card debt with an inheritance of roughly that size. It completely changed their outlook on life. Before every month was a struggle to just stay on top of the credit cards. Now they are debt-free and are actually able to save a bit of money every month. And for example able to go eat out without struggle.

Mind you by hn standards this is on a miniscule income. Still, many people are struggling hard and a windfall like this can make a huge difference in quality of life.