Debt settlement proposal letter template​​ Below, we've created an example of a debt settlement proposal letter that you can use as a guide. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.Use this letter to help you negotiate a full and final settlement offer with a creditor. 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. Crafting a debt settlement letter properly can help you get your creditors to accept your proposal. Learn how to write correctly one now. 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.