This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete.To fill out this letter, clearly write your name and address at the top. Include the date and the collection agency's name and address. 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. Learn how to write an effective collection dispute letter with our guide and templates. Address at which service was made. (4). 1. Read the background below. 2. Fill in your information on the sample letter and edit it as needed to fit your situation.