If the collection agency or creditor rejects your offer, don't lose hope. 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. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. 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.