You can use the following Cease and Desist letter to debt collectors as a template. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.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. How do I dispute charge-offs with the credit bureaus? What should I include in my charge-off dispute letter? 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 a tool to negotiate with your creditors and settle your debt at a lump sum payment you're comfortable making. A wellwritten debt settlement letter is crucial to the debt negotiating process. A judgment creditor may ask the court to seize your property in order to pay a debt for which the court has issued a judgment.