Use this letter to help you negotiate a full and final settlement offer with a creditor. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution.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. We've settled debts with most major lenders. Here are examples of the letters we have sent that have worked for our clients. I can confirm that I am unable to offer to pay in full what I owe. And I want to offer this as an ex-gratia payment in full and final settlement of the account. Specify that the proposed payment will work as a complete settlement for the entire debt.