Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now.Use this letter template to make a debt settlement offer to creditors. For more on this topic, see our guidance on negotiating a debt settlement with creditors. Use this letter to help you negotiate a full and final settlement offer with a creditor. This is a template letter to your creditors requesting that they forgive your debt and write it off for compassionate reasons. 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. 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.