List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.Use this letter to help you negotiate a full and final settlement offer with a creditor. 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. We've settled debts with most major lenders. Here are examples of the letters we have sent that have worked for our clients. Have you recently settled a debt and are searching for a paid in full letter? Good news, we've got two free sample form letters below. Use this letter to help you negotiate a full and final settlement offer with your lender.