This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Use this letter to help you negotiate a full and final settlement offer with a creditor.Download this free sample of the debt settlement agreement template and know how to confirm the verbal debt settlement agreement in writing. A debt settlement letter is a written proposal for you to offer a specific amount of money in exchange for the forgiveness of your debt. For assistance in requesting a loan modification or other relief, you can contact a HUD-approved housing counselor. Our debt settlement agreement template helps to clearly outline repayment terms to reach a mutually agreeable solution. What should I include in a debt settlement letter? A black and white letter template for a debt settlement request. Fill in your contact details, account number and any extra information you want to include in the grey shaded areas. Today's date will be added automatically.