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.Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. I am now experiencing financial hardship due reduced income. Learn how to respond effectively to a court summons in North Carolina for debt collection. Use this letter to help you negotiate a full and final settlement offer with a creditor. A debt settlement letter should include the date, your name and contact information, the creditor's name and contact information, the total amount of the debt, A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency.