Offer what you feel you can afford to pay and see if the collection agency is willing to accept. Use this sample debt settlement letter.Writing the Settlement Offer Letter Specify the amount that you can pay, as well as what you expect from the creditor in return. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. 100 provides the requirements for rejecting a Creditor's Claim. If you reject a settlement offer, or fail to keep up with a payment arrangement, your creditor might take you to court. 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. Always reject a settlement offer in writing. Type a letter to your contact at the insurance company listing the reasons you think that their offer is too low.