Settlement demand letters differ because no two cases are the same. A demand letter is a formal, written document clearly stating what the victim wants in compensation.The letter states the basis for the monetary demand. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information. The letter says what kind of payment you're looking for and goes into some detail to justify your settlement demand. Instant access to fillable Microsoft Word or PDF forms. Minimize the risk of using outdated forms and eliminate rejected fillings. Thank you for downloading!