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.Use this letter to help you negotiate a full and final settlement offer with your lender. Use this letter to help you negotiate a full and final settlement offer with a creditor. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. How long does it take to process my request? Requests complete with required supporting documentation are processed in the order in which they are received. To dispute a debt, you must write a letter to the debt-collection agency within 30 days of their initial contact with you. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample.