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.Looking for cover letter ideas? See our sample Debt Collector Cover Letter. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You can use the following sample letters as examples of the type of letter you might write in each situation. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution.