This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. This program will help you write a letter that formally requests the money you are owed.This is called a Demand Letter. Use this letter to help you negotiate a full and final settlement offer with a creditor. Use this letter to help you negotiate a full and final settlement offer with your lender. What to include in the Alameda demand letter? 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. You can also send a debt settlement offer, which requests the creditor or debt buyer to settle the debt out of court. It's important to file claims in a timely manner.