Option One Financial Group/Debt Options?

Hi, this is my first post and I am very glad that I discovered this wonderful site before I made a decision on my debt.

I have hospital Bills and credit catd bills around $5,200. I can't afford the hospital's "Lowest Monthly Payments" and these are going to collections. I am also late on my Credit Card payments (2 Months). I called a company Called "Debt Options"...they reccomended debt consolidation. The monthly total was still very hard for me to afford so they reccomended debt settlement (Which appers to be under a different branch of the company called "Option One Financial Group, INC"). It sounded great...I pay only $123 a month for 4 years and get out of debt. But it looks like $56.50 of this a month goes to the company. The lawyer gets a 25% commision on the difference of the payout and a retainer fee of $249 is required for startup. They made it sound like my creditors would be fine under the plan and I'd be able to settle it in 4 years without much damage. $123 a month would be great...but I dunno now...Anyone heard of this company? Has Settlemt like this worked for anyone else?

My credit is allready bad.