Want to settle your debt? 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. 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. Use this letter to help you negotiate a full and final settlement offer with your lender. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Request to begin debt settlement negotiations. If the collection agency or creditor rejects your offer, don't lose hope.