Creditor has called to discuss payment options - What to do

Daren,
First of all..which state are you from? How many credit card payments you've failed to pay? Normally if you are late for more than 30 days, you account will be marked as delinquent.
If you are comfortable with the payment option he gave you, go for it.
If you want to go for a settlement option, then you must not pay anything to them. Consult a debt management company and ask about your options. The cost of settlement will vary, depending on the company you are working with.

They will not sue you as they have offered you a payment plan. You can accept it and repay your debts. You can also consider debt settlement program to pay your debts.

Remember, the settlement fees will be based on your total amount of debt that you enroll- usually 20-25% of the total debt. And it is also based on the amount that you save. Make sure the settlement company is not a scam.

Yes, Sanderspatricia is right. It is based on the amount you owe. But remember the settlement companies can't charge anything before they settle a debt. Make sure to choose a reliable company.