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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. How to use this sample letter: 1. Read the background below. 2. If a creditor has refused your offer of payment then you can use the Reconsider my pro-rata offer sample letter to ask them to reconsider. Skip to Main Content. Menu.