This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Not sure about how to counter your creditor's debt settlement offer?Download this free Debt Settlement Offer Letter sample. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. Have you recently settled a debt and are searching for a paid in full letter? Good news, we've got two free sample form letters below. 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. Write an effective settlement demand letter. Get tips on structure, key elements, and a free template to negotiate your legal disputes.