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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. Use this letter to help you negotiate a full and final settlement offer with a creditor.