This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Do You Owe Taxes on Settled Debt?A good debt settlement letter should be concise, thorough, and convincing enough to get a creditor to agree to your terms. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Make a genuine offer that the creditor might accept. Going too low with the amount might lead to the rejection of the debt settlement letter. For completed examples of some legal forms, see our Self Help Form and Sample Packets page. Handwritten forms are hard to read. Debt Collection Self-Help Videos and Documents.