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. When drafting a debt settlement letter, you'll want to include basic information, including your name and account number. Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors. 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. Try to negotiate a settlement; Fees and fee waivers. If You Decide to Respond….