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. 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. Use this free settlement agreement template to keep the terms confidential between parties. Use it in court if some of them are not met. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You need to include a defense in your Answer. Here's an example of a debt settlement agreement, which is what you should file into your case. Student loan debt relief companies might say they will lower your monthly payment or get your loans forgiven, but they can leave you worse off.