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.Use this letter to help you negotiate a full and final settlement offer with a creditor. As full payment and satisfaction of the Present Debt. This letter is in reference to the account number identified above and its outstanding debt. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Use this letter to help you negotiate a full and final settlement offer with your lender. I am now experiencing financial hardship due reduced income.