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.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. Learn how to write an effective collection dispute letter with our guide and templates. In the sample letter, fill in your personal information. A pay for delete letter is a negotiation tool to have negative information removed from your credit report. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. 2. How much money are you being sued for? Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors.