This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete.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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. You have 30 days from the rejection date to file an official request for appeal. A wellwritten debt settlement letter is crucial to the debt negotiating process.