Q&A: Is settling a credit card debt good? what are the consequences?

Question by hairspilter: Is settling a credit card debt good? what are the consequences?
CC company have offered to reduce the tot. amt. by 1/3 and settle or pay the total amount with very low interest rate. Which is better. According to them 2nd option is better( b/c of credit rating ). But 1st option look good to me.
So either i can pay .33 cents for each dollar owed and settle or pay $ 1 plus 2% interest per dollar owed and pay in full.
1st option will show "settled" for 7-10 years,

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