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. 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. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. To respond, you should answer each issue from the Complaint, assert your affirmative defenses, and file the Answer document with the court. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete.