What to do with lump sum?

Adoremouse

Hi everyone,

I'm new to posting (have read tons of posts though), and apologise for my first post beinga request for advice!

We are currently on a DMP with CCCS, and have been for a couple of years, our debt with them has been reduced from £36,813 to £27,525. We currently pay £488 permonth, and it’s estimated that we will have finished paying it all off in about 4 1/2 years.

We also have a Picture loan which was a consolidation loan, which was for £32,000 over 25 years. We still have £30,106.73 left to pay on that (but if we can save up and pay early, we would get a lower settlement figure). We pay £284.01 per month,and interest is being added at around £247 per month at the mo, it's coming down very gradually each month as it's front loaded, hence such a high balance despite having taken it out in September 2007!

On top of all that we have our mortgage, which is around the £182,000 mark, and our house is probably worth around £185,000. As the Picture loan is secured on the house, we are in negative equity.

We have a lump sum coming to us soon,and we’re not sure exactly how much (it’s a small inheritance) but it will beat least £5,000, possibly more (it depends on how much some shares sell for!).

So my main question is: What’s themost sensible thing to do with the lump sum? I was thinking that if it’s morethan £5,000 we could try for full and final payments on the CCCS creditors.Then we could put aside the £488 per month that we usually pay them so that wecan pay Picture off early?

If it's not enough to do that, then would it be more sensible to make an overpayment on our mortgage (we are allowed to do that)?

If I’ve missed off any vital info,please do let me know J

Thanks in advance!

Adoremouse

I've just spoken to CCCS who are sending me out a settlement pack, which should help usecide what to do.

Thanks for reading, to those who did