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. 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. Debt Collection Self-Help Videos and Documents.