This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. Here's everything you need to know about drafting and filing an Answer to a credit card debt lawsuit, with sample Answers included.Fill in your contact details, account number and any extra information you want to include in the grey shaded areas. To settle credit card debt before court, contact creditors early, negotiate a payment plan or lump-sum settlement, and respond promptly to lawsuits. 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. If you're worried about how to get out of debt, here are some things to know — and how to find legitimate help. Your debt settlement proposal letter must be formal and clearly state your intentions and what you expect from your creditors. A debt settlement letter is all you need to negotiate debts with your creditors. It asks you to pay a certain settlement amount to the collection agency. Want to settle your debt?