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.To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Download this free sample of the debt settlement agreement template and know how to confirm the verbal debt settlement agreement in writing. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. A debt settlement letter should include the date, your name and contact information, the creditor's name and contact information, the total amount of the debt, A final demand letter is a letter sent in an attempt to collect a debt or repayment. 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.