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.Want to settle your debt? Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. The first step in a debt settlement negotiation with a bank, credit card company, or collection agency is to confirm the debt belongs to you. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court.