A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Your letter can be sent via your preferred contact method. This document provides instructions for settling credit card debt through a series of letters sent to the credit card company over several months. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Offering San Jose debt settlement and relief . Call for your attorney negotiated debt settlement free consultations at our San Jose law offices. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms.