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.A settlement demand letter is a letter that a person with a personal injury claim (or their attorney) sends to the entity in charge of covering that claim. 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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. We wish to settle this case amicably. This article explains what demand letters are, when they are useful, and how to write them. How do you counter offer a settlement letter?