If you are on disability, have no garnishable source of income, and do not own real estate, then you may be "judgment proof," which means even if they sue you they still can never collect, so you may be able to ignore them. If you do have a job, then if they sue you they may be able to garnish you, so you will need to deal with them one way or another. Or, if your name is XXXXX XXXXX deed to real estate, if they sue you they will likely get a judgment lien on the real state, which again may force you to deal with the debt now, one way or another. But, if you cannot be garnished and have no real estate they can attach a judgment lien to, then the only issue you may face if they sue you is a hit on your credit score.
However, if you decide to deal with the debt now, it is rarely ever a good idea to incur new debt to try to pay off an old debt, and credit cards will usually take 40% or less to settle an old account, so their offer to reduce the balance by $111.49, which is basically agreeing to settle for 90%, and then charge you 19.9% interest, is not a very good offer based on many that I have seen.
Obviously I do not know all the facts and details of your situation, and even if I did I cannot give you advice online since I am not licensed to practice law in your state, but I can say that generally people who are judgment proof advise the collection agencies of this fact and then ignore them. After 6 years or so from the last charge or payment made on the account (depending on your state law) the debt expires based on the statute of limitations and becomes legally uncollectable. This does not mean they may not attempt to collect it after the statute of limitations expires, but if they do sue you and you respond to the lawsuit showing the court that no charges or payments toward the account have been made within the statute of limitations period for your state, the court would likely throw out their lawsuit anyway.
I hope this helps and a positive feedback is always appreciated if this was useful to you.
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