This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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 the sample letter on the next page to ask for more information about this debt. How to use this sample letter: 1. Use this letter to help you negotiate a full and final settlement offer with a creditor. Download Minnesota Debt Validation Letter template, modify and send for signing using BoloForms Signature.