Unfortunately I have been in his situation and even worse at that. It was 6500 on a charged off/delinquent account. If his is in the same status (charge off/deliquent) your best bet is just to take whatever settlement they offer. If its still an active account then he needs to make some cuts in his lifestyle and pay substantially more than his minimum. A consolidation loan is an option but I would advice you against cosigning or helping in anyway other than advice and guidance. It's a tough lesson to learn but it'll get him out of that "I can pay it back later" mentality. If you help him financially he'll get himself into the same situation within a year. Nothing has taught me more about financial responsibly than having my credit ruined and being broke paying rent plus a 950 dollar a month settlement. I got myself into trouble at 18 and like I said it absolutely wrecked my credit for a time (540s) now I'm 23 with a 690 credit score and multiple cards I hard ever use. He wont truly understand how important it is to pay your bills until he wants a new car and they want 18% or he wants to move out and they want a 1500 dollar deposit. I know it's probably not the answer you were looking for but speaking as a young kid that did the same thing the best way you can help him is by not helping him.