This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. 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. A demand letter to an insurance company is often the first step toward initiating or litigating a case after an accident or personal injury in Nevada. A demand letter to an insurance company is often the first step toward initiating or litigating a case after an accident or personal injury in Nevada. You may have a debt in joint names, or want to write to your creditors together because you have worked out a joint budget. Use this letter to help you negotiate a full and final settlement offer with a creditor.