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. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. 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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Want to settle your debt? The first thing you need to do if and when you get sued is file an Answer. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal.