This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. The Consumer Financial Protection Bureau offers sample letters the debtor can use to dispute a debt.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. Let's take a look at an example of debt settlement in Utah. Use this letter to help you negotiate a full and final settlement offer with a creditor. Its not hard to negotiate a settlement with debt collectors. Start low, get the agreement in writing, and be sure you owe the debt first. "Generate a free Debt Validation Letter to ascertain the legitimacy of your debt. Not sure if you owe?