Two years ago my 20 year old son received a credit card with a limit of $5000, he was 18 at the time. For a year and a half he spent like crazy but was always able to make his minimum. Six months ago he missed a payment, and has not made a payment since. He has not answered any of their calls or letters because he was scared. Since I am an authorized user on the card they recently sent me a letter. It states that he now owes $6,110 and they are willing to settle for $1,260 in four payments of $315. I think this is a great deal because he will never be able to pay it off otherwise. My question is, should we ask for a paid or paid as agreed on the CR or will we even have that option. Would we stand a better chance if we paid the $1,200 in one lump sum instead of the payments? I don't want his credit ruined for the next 7 years. It's ridiculous that a company would give an 18 year old $5000 to play with, he didn't even have a job! Any advice would be appreciated.
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