Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.I am now experiencing financial hardship due reduced income. Because my income has dropped considerably I can no longer afford the terms of the original loan. This guide has forms and instructions to file an Answer to a debt lawsuit in Texas Justice Court (also called small claims court). 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. What key details are required to complete a debt settlement agreement? With debt consolidation, you take out a larger, low-interest loan and use that money to pay off your higher-interest unsecured loans.