Use this letter to help you negotiate a full and final settlement offer with a creditor. This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain.A settlement demand letter is designed to make the strongest case possible for why you deserve appropriate financial recovery. This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. We wish to settle this case amicably. 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.