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. A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. You need to fill out a form to be considered for "Poor Person Relief. 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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Consult with Our Expert Lawyers on Debt Collection.