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.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. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. In Virginia, there is no deadline to file a response to a debt lawsuit. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now.