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.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. A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. 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 a creditor. 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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample.