Please Help!!!!Debt collection agency offered me settlement

Micahisa,
I've got an account with Discover and they turned me over to a lawyer's office. I would settle this now if I could get the money. I've settled with 3 other creditors I had and wish I had the money to do so with Discover. I'm on a hardship program due to helath issues. I would take the settlement and get it over with. That is my advice. It will take your credit score down a little and look a little negative on your score for 7 years but it's better than chapter 13 or not evening paying the debt off. Don't you think so. Do what you want but I'd go with the settlement. They may come down for you if you tell them you have only 3 or 4 thousand. Try and get a lower $ if you can. Let us know. Good luck and Merry Christmas to you.

Yet, even when you settle as long as your stuff is in order, you'll be ok.

I know a colleague who settled a credit card and defaulted on a student loan. He got his credit back in order by utilizing and orchard bank card responsibly (meaning charging a hundred bucks and paying it off), in 18 months he got card offers from american express green card. BTW, this guy only made 35K a year with legal aid society, in case there were any questions.

Actually Hockeyman, when financial institutions look at demographics of who they offer credit to they like to offer it to those who are least likely to be able to pay it back, especially those who have filed bankruptcy before. Reasons why?
1. Interest, late fees. They already said that's where they make their most money.
2. If you went bankrupt before, it's harder for you to file again. Plus it shows that you already have had a "taste of credit" as they put it.

Take the deal as long as the deal is in writing and states paid in full without recourse.

No electronic access to your checking account. No postdated checks. Nothing but a money order overnighted. If they won't do that part of the deal, they weren't sincere in the first place and were planning to take all the money from your account.

Do the deal but know you will get a 1099 for the debt forgiveness and assuming you are in the 15% tax bracket, that would amnount to about $945 in Federal income taxes as well as any State income tax effects (in GA it is 6% so that would be another $378). So net effect after taxes, you would be savings about $4,977 but will have your credit dinged for it.

GBD

4700 is a good offer. I'd go for it but as stated above make sure you are aware of all the consequences.
Most of all be sure your paperwork is in order and whatever you sign read it carefully.