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.This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. We've settled debts with most major lenders. Here are examples of the letters we have sent that have worked for our clients. Use this letter to help you negotiate a full and final settlement offer with your lender. Thank you for downloading! This Settlement Agreement (the "Agreement"), effective as of the Multistate Settlement. Use this letter to help you negotiate a full and final settlement offer with a creditor. Creditors and debt collectors can pursue debt lawsuits against consumers who don't repay their loans.