I would suggest that you save your money and put it towards paying the Judgement. The creditor, if its a credit card company, likely has a contract that permits it to increase the amount owed by interest and costs to record a judgement. Contact the law firm that filed the judgement and propose a settlement of $1,000.00 as all she can pay. If they accept it then get the agreement in writing and pay it.
Technically speaking, your daughter can represent herself, and sign on her own behalf. She does not need an attorney to defend herself. Representing yourself in court is referred to as appearing "pro se". That said, you have to have a reason to vacate or set aside a default judgment. Keep in mind that the credit agreement probably has a provision that says that the creditor (your daughter) must pay the credit company's attorney's fees incurred in trying to collect on an overdue debt. The credit card company would rather receive some payment, rather than none at all. Trying to negotiate a discounted amount, in settlement of the case, may well be the way to go, especially since this is predicated on a $500 credit balance. You/she might want to suggest that she pay the $500 to settle the action. It's worth a shot. Even if they don't accept the offer, they will likely come back with a counter-offer, which you can again try to negotiate down, to resolve the matter.