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.Use this letter to help you negotiate a full and final settlement offer with your lender. Below is a sample settlement letter from the paying agency to the OAG authorizing the settlement or judgment and amount of the claim. This article explains what demand letters are, when they are useful, and how to write them. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Use this example below as a guide when writing to or talking with creditors. Replace the blanks with your own information. A demand letter is an official notice requesting money, possession of assets, or action on a legal matter. If in agreement, the payor can provide payment immediately.