Should I take an offer to pay off a CC for less than the full amount?

Got into financial trouble recently (who hasn't) and got behind on a Wells Fargo credit card/loan (mattress discounters). They sent me a letter offering my to pay $300 of my $1400 balance and it will read on my report "account paid in full for less than full balance." I know that's bad, but unfortunately I can't come up with the miminum payment I owe (close to $600). What should I do? Either way is hurting my credit, I'm aware.