A credit card settlement is the process of negotiating with your lender to decrease your account's outstanding balance so that you can pay off all obligations. You may be able to reach a compromise by paying less than what you owe and exiting debt sooner, or they might agree not to charge interest on the account in exchange for this.
In general, paying off the entire amount of your debt is preferable. An account that reads "paid in full" on your credit report indicates that you have completed your obligations as agreed and paid the lender in full, so you may receive lower interest rates on future loans.
Kotak Credit Card Settlement, Borrowers Guide
