Josie - It must be so frustrating to get conflicting advice. I can't tell you what to do, but if you did decide to settle (and I'm not necessarily saying that you should), keep a few things in mind:
1. If they offered to settle for 50% of the debt, it means they will accept a lot less. It's a negotiation, so counteroffer with perhaps half of what they offered.
2. Don't be pressured by the "offer good today only" line. Despite what I said about getting a judgment, creditors don't want to go to court if they don't have to. It costs them time and money. It's cheaper and easier for them to call and try to intimidate you into paying. Up to a point, that is.
3. If you do settle and more than $600 of your debt is wiped off, then the creditor/CA is required to report that to the IRS. Why? Because it's considered taxable income to YOU. So if you owe $1200 and you negotiate with them to accept $400, you may owe tax on $800.
Hope you decide what's best for you. I don't envy you being in a position to make an important decision and having so many people weighing in with different advice.