Should I "settle" or keep it in Debt Management ?

Posted by Feeniks (4.34.160.107) on July 22, 2004 at 15:18:48:

I need some guidance. Some time ago, my fiance was laid-off with the whole computer market crash. We missed bill payments in order to pay our rent to have a place to live. Over time, we put our debts into a debt management plan to stop the late fees, interest charges, etc. Unfortunately, one of the creditors charged off the account 2 months prior the acceptance of the proposal.

We are trying to buy a house now, and the charge-off is not good (plus all the delinquent payments). I called the creditor and they said they would settle the account with 50% of the remaining balance. Should I? Would that help our credit scores or would that be just as bad as having the charge-off and keeping the account in debt management?

Any info would be great.

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