This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information.Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. Also includes sample letters to debt collectors. How to use this sample letter: 1. Read the background below. 2. Use this letter to help you negotiate a full and final settlement offer with your lender. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.