Clearly state your demand. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors.This is a nonbinding proposal of terms and conditions of settlement between the City of San Antonio. Below is a sample settlement letter from the paying agency to the OAG authorizing the settlement or judgment and amount of the claim. Include a paragraph explaining your circumstances and details of your financial situation that you want the creditor to take into account. This demand letter for payment is available for free on UpCounsel. Use it to demand payment of a debt or money owed and create evidence for the court.