This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Fill in your contact details, account number and any extra information you want to include in the grey shaded areas.SoloSettle can help you settle the debt once and for all. 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. I request written confirmation showing this account as {paid in full or settled} according to our agreement on {insert date of agreement}. 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. Must send a written "validation notice" telling you the amount you owe within five days after they first contact you. A pay for delete letter is a negotiation tool to have negative information removed from your credit report. This could happen years later and you may need the letter as proof.