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 dispute an invalid debt use this disputing debt sample letter. If you've fallen behind on your bills, especially credit cards, don't panic. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms.