This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. This letter is to inform you that the validity of this debt is disputed and it is written without prejudice.Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. You can use the following Cease and Desist letter to debt collectors as a template. State your offer to resolve your debt. •. Show them you are willing to participate in a Workout Solution. •. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Although I certainly want to continue paying on this debt, I simply cannot afford to pay the new, higher amount you are demanding. You may be eager to know if you, the creditor, approve or decline the proposal. Adding a response date in the letter helps get a faster reply.