This article provides a template for a debt settlement proposal letter and explains what a debt settlement letter should contain. You can request a payment plan.Use our debt validation letter to request the validity of a debt. Download Pdf Select your state below to find a Free Debt Validation Letter. Complete and submit an Offer in Compromise Request, form TC-410. This article will explain how to handle debt settlement on your own and how to write the best debt settlement letter possible. Get written confirmation of any payment plan the agency will accept before making a payment. 7. Subsection (1)(c)(i). To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details. To make a debt settlement agreement, you should identify your debt owner, negotiate a settlement, and formalize the agreement in writing with all details.