This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.You can use the following Cease and Desist letter to debt collectors as a template. 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 provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. State your offer to resolve your debt. •. Show them you are willing to participate in a Workout Solution. •. Fill in your information on the sample letter and edit it as needed to fit your situation. Delete any parts that don't apply to you. 3.