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.Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now.