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. 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. We'll walk you through how to put together a debt settlement letter that gets to the point and shows your creditors you're serious about sorting things out. Download a free pdf version of sample letters to dispute with credit bureaus and negotiate a payment plan with creditors.