Help: Member wanting to cancel early

Has anyone dealt with a member wanting to cancel membership early and unwilling to pause the membership? My policy in the signed contract is "no refunds" and a fee of $500 for a pause of a few months, but they were unwilling to pause, and just wanting to completely cancel the membership, and they're not in a financial position to keep paying the monthly payments. I don't want to be shaky on my boundaries but I also understand where this member is coming from. She was very apologetic and said she'd wished she'd read and understood the contract better when she signed it back in the Fall. I told her I'd think on it and get back to her after I've considered a middle ground option. Should I just give her the option to pay the "pause" fee of $500 as a cancellation fee instead? I don't want to force a person who has made up her mind and has been thinking about this for a while and who had a lot of courage to bring it up to me. I'd really appreciate feedback on this situation.

@Cate Stillman

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