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. If you need assistance with your mortgage please prepare the following documents and contact our office at 1-800-650-7162. A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. This form is furnished to give you a statement of actual settlement costs. If you've stopped paying your creditors for unpaid debts, they will likely report your account as a charge-off after four to six months of non-payment. Student loan debt relief companies might say they will lower your monthly payment or get your loans forgiven, but they can leave you worse off. If you fill out a form on a webpage, you will lose your progress.