This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. Below is a sample settlement letter from the paying agency to the OAG authorizing the settlement or judgment and amount of the claim. A debt validation letter is a written communication that a consumer sends to a debt collector or creditor to request verification and validation of a debt. Contact your creditor, explain your situation and try to create a payment plan. Usually, creditors will help you catch up. This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. What would be a good settlement offer or payment plan?