This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Use this letter to help you negotiate a full and final settlement offer with your lender.Here is a quick template for those looking to send a settlement offer to a collection agency or Pay for Delete. This page focuses on how to write an effective settlement demand letter to the insurance company in an auto accident case to maximize your settlement amount. The letter addresses why you are unable to pay the debt, how much you're willing to pay now, and what you would like from the creditors in return. Below is a sample personal injury release for a written settlement agreement. Typically, the insurance company will give you their own standard release. This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. 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.