Learn how to write an effective collection dispute letter with our guide and templates. A debt settlement letter contains a proposal offer that will hopefully open the door to negotiate a fair and reasonable debt settlement.Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. I am writing in regards to the above-referenced debt to inform you that I am disputing this 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. 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. 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 Texas. For more information, see ourCookie Policy. Reject Additional Cookies Accept All Cookies.