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.Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. We've settled debts with most major lenders. Here are examples of the letters we have sent that have worked for our clients. 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. When drafting a debt settlement letter, you'll want to include basic information, including your name and account number.