This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Learn how to write an effective collection dispute letter with our guide and templates.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. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. I am writing in regards to the above-referenced debt to inform you that I am disputing this debt. 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. A general and uniform system of free public schools shall be provided throughout the State, wherein equal opportunities shall be provided for all students.