Need Advice, Should I take the money..?

Take the money only so that you can get on with improving your life...both for you and your child. Make sure to make the installments on time, every time (if only for another "lesson learned"). This might help boost your self esteem knowing you've not only "done your time" but are acting like a responsible adult parent. When you're finished paying him, be sure to buy a nice thank you gift and note....telling him thanks for letting you make better of yourself.