This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Florida.Settlement offer letter template. Use this template letter to make an initial debt settlement offer if the debt is still with the original creditor. 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. A debt settlement letter is a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making. A wellwritten debt settlement letter is crucial to the debt negotiating process.