That's tough to answer without knowing more details. The chargeoff will, of course, impact your credit report. But I'm guessing your credit is already pretty bad if this is a legitimate offer. And I'm also assuming this is an unsecured loan, like a credit card or medical debt. First determine whether this is a real offer from the company you owe -- or from a collection agency. Ask to see the offer in writing, and ask if there is a complete release from all liability. And before accepting this deal, I'd contact the nearest local office of the National Foundation for Credit Counseling to help you verify whether this offer is legit. Call 800-388-2227 to be connected to the nearest local office.