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Originally Posted by SiN
really?
I've done the settlement thing once before..how does it hurt?
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I know that in the agency I work for, a settlement shows up on the credit report as having been "settled for less than the full balance", which means that it shows a balance was remaining on the card...essentially a slightly kinder way of charging off the account.
As for the original poster: I know that different agencies have different payment plans available. Some are unable to offer payments, while others can't offer settlements. Even with that settlement offer, it still sounds a little high. In my office, that account would have a settlement offer of approximately 1100.00 USD. I'd recommend trying to figure out if they offer ANY kind of payment plan that would allow you to takecare of the full balance in parts. It looks much better getting the entire balance paid off than to go for a settlement.
One option that may be available is what my company calls the "cure" amount. Basically, it's paying off the past amount due on the card. For the company I represent it allows you to stop the late fees which quickens your ability to pay off the card, since more of each dollar goes to the balance. The agency with your account may not have these options.