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. You can request a payment plan to settle your debt over time. Payment plans are available for individuals and businesses. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors.