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Compensation and debt

My husband an I have debts totalling £40,000. We are currently in payment agreements with them all and we are paying very low amounts. We have a total of £63.87 per month to service them. We regularly keep in touch and send them any relevant information.
We are due a compensation payment which may be able to cover the total debt. Are we obliged to use all of the money to pay off our debts. Can we pay some off our mortgage. (we can pay 10% per year). I am wondering what do do?
Thanks
K

Comments

  • HHH_2
    HHH_2 Posts: 442 Forumite
    You could try offering full and final settlements to your creditors which will be a percentage of what you owe but I think you probably need to offer each the same percentage.
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