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. List your name, account information, the original creditor of the debt, and the debt collection agencies identifying information. Use this letter to help you negotiate a full and final settlement offer with your lender. This form is furnished to give you a statement of actual settlement costs. Use this letter to help you negotiate a full and final settlement offer with a creditor. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included. Here is a sample letter showing how to request a settlement of your debt.