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.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. Avoid debt-settlement companies that require payment in advance of obtaining the promised settlement. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. Use this letter to help you negotiate a full and final settlement offer with your lender. Free sample letters for writing to creditors.