Want to settle your debt? In return, I request that the remaining balance be forgiven and the amount marked as "paid in full" with the credit bureaus.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. This letter is to inform you that the validity of this debt is disputed and it is written without prejudice. If a creditor has refused your offer of payment then you can use the Reconsider my pro-rata offer sample letter to ask them to reconsider. Credit card banks often refuse to settle your account in the first couple of months you do not pay. Their stance changes over time. A debt settlement letter is a proposal that can allow you to negotiate a reasonable and fair debt settlement. This letter to the attorney is a settlement offer. Use this letter to help you negotiate a full and final settlement offer with a creditor.