A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. 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.If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. 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. Learn how to write an effective collection dispute letter with our guide and templates. View on Westlaw or start a FREE TRIAL today, § 9-11-68 Form 2. Plaintiff's letter rejecting Defendant's offer of settlement, Legal Forms. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.