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 a creditor.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. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Write an effective settlement demand letter. Get tips on structure, key elements, and a free template to negotiate your legal disputes. Your letter might be 20-30 pages long if your claim is complex. Use this letter to help you negotiate a full and final settlement offer with your lender.