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.Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. To dispute an invalid debt use this disputing debt sample letter. If you've fallen behind on your bills, especially credit cards, don't panic. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. Want to settle your debt? The first step in a debt settlement negotiation with a bank, credit card company, or collection agency is to confirm the debt belongs to you. I am writing about the money which you are claiming I owe on the above account.