This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Settlement offer letter template.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. 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. Use this template letter to make an initial debt settlement offer if the debt is still with the original creditor. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Download our sample letter templates. Failure to do so may be cause for rejection of proposal.