Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Your letter can be sent via your preferred contact method.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. 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. The FEDERAL REGISTER (ISSN 00976326) is published daily,.