List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Use this template letter to make an initial debt settlement offer if the debt is still with the original creditor. Use this letter to help you negotiate a full and final settlement offer with a creditor. How to use this sample letter: 1. Read the background below. 2. Debt collection letter from attorney can be a sensitive issue, no matter what side you're on.