This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. The template below can help you write your own pay for delete letter.Simply update the bolded portions with your own information. Additional forms may be found at the Superior Court's Law Library Resource Center website. How do I go about this? Want to settle your debt? Looks like, I have a deal with an attempt to reage an old debt that was long out of SOL. 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. In order for the deposit to be waived, we require a letter of credit from a utility service.