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. If your lender agrees to settle a debt for less than you owe, you'll need a written agreement of the terms. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. An answer is what you tell the court about what the plaintiff said in the complaint. Explain your financial situation and specify how much you're offering to pay to close the account. Your offer to settle the debt should be clear and straightforward.