I have settled two Credit cards with the original creditors one week before charge off and am waiting for the arrival of the settlement letters. I have two questions:

1. What should I make sure these letters contain, in order to make sure that the money will be for full payment? I have heard some horror stories of the money only being applied to the balance and the remainder being charged off.

2. What is the best method of payment? Should I write "paid in full" on the check or is this a myth

I got US bank to settle a 6000 debt for 2000 and wells Fargo to get a 7000 for 3500, Wells Fargo was a real pain. US bank was easy. I learned so much in this process, i heard a different thing, from every different representative. Thanks for all the help.

If you have the settlement agreement in writing and you pay off the settlement amount to the creditors, the creditors cannot legally charge off the remaining balance after you pay off the debt.
Once the debt is paid, the creditors will report it to the bureaus either as "settled for less" or "paid as agreed".