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. Make it clear to the creditor that you intend to pay the debt. •. Explain that you are unable to pay the debt due to (detail your hardship). This article will make the process of responding to a debt lawsuit a little bit easier and tell you how to answer a summons for debt collection in Florida. Use this letter to help you negotiate a full and final settlement offer with a creditor.