This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.A debt settlement agreement is a contract signed between a creditor and a debtor to re-negotiate or compromise on an outstanding debt. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. A debt collection letter informs clients about their unpaid bills. Inquire about payment and if necessary, help them set up a payment plan. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Find out how you can use a lawyer debt collection letter to make sure you get paid? We've also included a debt collection letter sample.