debt settlement on the credit report

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How much is the debt and what type of debt is it?

If it's not a very large amount of money and being that it's only one you could try to settle it yourself. If you can afford to pay it off in one payment I would try for a "pay for delete".

I would settle for less, at 120 days late you have already hurt your credit and at 180 days creditors typically charge off your debt as a loss; that doesn't mean you don't owe them, it's an accounting practice that is required in order to show true profit of a creditor. If the debt charges off it has the same negative effect as "paid and settled for less". After you are charged off you risk the possibility of being sued, sent to collection or sold to a junk debt buyer; all of these situations are worse than dealing with the original creditor.