A debt settlement letter contains a proposal offer that will hopefully open the door to negotiate a fair and reasonable debt settlement. 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. 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. This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Florida.