This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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.Most debt settlement letters include: The date, name, and address of the credit card company. I. Causes of Action: The case law references two common causes of actions available in an action to collect a judgment on an overdue credit card account: An. Contact us to report a debt settlement scam or call toll free within North Carolina at 1-877-5-NO-SCAM. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. A debt settlement letter is a written proposal for you to offer a specific amount of money in exchange for the forgiveness of your debt. If you don't dispute the amount owed and you expect to lose in Court then settlement may be your best option outside of bankruptcy. It should also include a detachable form that you can fill out and return to the debt collector to dispute the debt or request information. Man in button up shirt holding paper.