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. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Debt Settlement Letter Sample - Free download as Powerpoint Presentation (. What are the consequences of not paying a debt settlement?