To fill out this letter, clearly write your name and address at the top. Include the date and the collection agency's name and address.A pay for delete letter is a negotiation tool to have negative information removed from your credit report. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. 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. A debt settlement letter is a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making. How to use this sample letter: 1. Read the background below. 2.