This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You may be eager to know if you, the creditor, approve or decline the proposal.Adding a response date in the letter helps get a faster reply. Not sure about how to counter your creditor's debt settlement offer? Download this free Debt Settlement Offer Letter sample. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. Want to settle your debt? Settling a Discover credit card can be a straight forward process if done correctly. Use this letter to help you negotiate a full and final settlement offer with your lender. Let's consider an example of how to resolve a debt lawsuit in Massachusetts.