Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency. Mention very clearly the fact in the letter that you are disputing the debt. Avoid any ambiguous language or assumptions. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. Use this letter to help you negotiate a full and final settlement offer with a creditor. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. Check out our debt settlement template selection for the very best in unique or custom, handmade pieces from our templates shops.