This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. It only takes 15 minutes to fill out the form, which will include your responses to each allegation from the Complaint and affirmative defenses.This blog is the perfect place to learn how to write a debt settlement proposal letter. 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 a creditor. Only enrolled Housing Stabilization Services providers may submit this form to DHS. All submitted forms are reviewed as soon as possible, in the order received. A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Use this letter to help you negotiate a full and final settlement offer with a creditor.