Personal Finance Advice

The traditional advice would be to pay off your credit cards first.
But in your case, I’d recommend that you hide the money away in a low fee mutual fund such as Vanguard’s 500 or a target retirement fund. And pretend you don’t have it until you retire.
The reason for my recommendation? The large size of your debt relative to the small size of your 401k for your age and the idea that you’re going to retire at the age of 60 indicates that you have problems managing your money. You’ll pay off your credit cards with the settlement money and then run them up to the limit again. With nothing to show for that. If you leave your credit card balances alone, at least that should put a brake on your spending.
On the other hand, if you can mend your ways and demonstrate that change in behavior by after a year having paid down substantially your credit card debts, then I’d say you could take some of the money, pay off the high interest debt, and then repay the money into long term savings.
Perhaps you’ll come back with a tale of woe as to how the incident that led to your settlement also led to your debt. But did it lead to your high car load debt as well? And to your belief that you’re going to be able to retire at the age of 60? I’m around your age, single, with no debts and substantially more in retirement savings and do not expect to be able to afford to retire at 60 without a substantial cut in my living standard.

First here is the unhappy truth. You will not be able to retire in eight years. If you take a conservative approach in that you can plan to draw out 4% initially from retirement funds and increase that each year based on cost of living, you would need $1 million saved in eight years just to draw out an initial $40 thousand the first year. I suspect that would be substantially short of your income needs.
So now what to do with your windfall. I would pay off the relatively high interest credit card debt and immediately seek financial counselling. With that much debt your spending is out of whack and you need some help. You need to cut up those credit cards and use the money that you were paying on them elsewhere.
You should also look at your vehicle situation. Do you need vehicles that have generated a $50 thousand in car loans? Selling those vehicles and purchasing more modest vehicles could free up additional money.
With the freed up money you need to be saving like maniacs. You must pack away as much as possible in order to retire and also work on paying on the mortgage as well.
You need a budget that cuts spending to the bone. You must reevaluate all your spending habits.
Then, perhaps you will be able to retire at 65. Right now your very small retirement savings is but a pittance towards your goal.
In other comments people recommend following Dave Ramsey’s Money Makeover Plan. I think this is a perfect idea for you. You need to develop an understanding of just how much money is needed to live on, retire on and achieve your goals.
Good luck. You are a long ways from achieving your goals, but you can do it.

I think it’s pretty obvious you want to pay off the credit card debt, but as the first 2 comments say, the first thing you need to do is address the reason you have $70,000 in credit card debt and $50,000 in car loans.