A Hardship Letter to Creditor is written by a borrower to his particular creditor describing the change in his current financial situation. When the borrower requests for any financial assistance or requests for an alternative payment method then the creditor requires a letter of hardship. This particular letter of hardship must comprise of a detailed explanation of the kind of assistance the borrower requires.
The letter should also include the cause of the financial hardship faced by the borrower and the current financial situation because of which the borrower is unable to pay the debt. Once the creditor has completely understood the borrower’s current financial situation, he will approve of an alternative payment method. The creditor might also offer for a temporary forbearance or some other financial option. Below mentioned are the tips, sample, and template which will help you in writing a Hardship Letter to Creditor.
Hardship Letter To Creditor Letter Writing Tips
- It should be written on one page.
- The letter shall give financial information about aspects such as income, rent, and food.
- It should be courteous and kind; after all, it is requesting for help.
- The letter should also provide with some personal details such as medical situations.
- If the debts are old, creditors are happy to accept any offer used for payment.
- The letter must be addressed to the person in charge of the consumer’s account.
- A written agreement should be requested.
How to Write a Hardship Letter to Creditor Letter Template
Use our free How to Write a Hardship Letter to help you get started.
From,
_____
__________
DD/MM/YYYY,
To,
__________
___________
Subject:__________
Dear (Name of Creditor Company Supervisor),
I write this letter to bring to your notice that I had been temporarily out of work which has caused a major financial crisis for my family. I have a workers compensation as well as unemployment, but this is sufficient only to pay my mortgage and provide food to my family.
Due to my current situation, I am requesting each creditor to kindly accept a reduced payment offer of ______dollars for the next _______ months. I expect to resume work soon and receive my full salary by then. If I can resume work earlier, I shall inform you about the same and return to my previous payment method.
I completely intend to pay all my debts, but I require some more time. I would also like to request that you reserve any interest on my debt for the next _________ months.
Please reply to this letter in writing at the address above. I can also be reached at _________and at _________. Thank you for looking into the matter and considering my request, and I hope to have a favourable reply.
Sincerely,
Signature of Consumer
Printed Name of Consumer
Sample Letter
From,
Ann Other
Anna-Str 4,
London
DD/MM/YYYY
To,
Liable Loans Plc
123 Green Lane
Redshirt
Subject: Hardship Letter
Your reference: LL/ANO/Reminder1
Dear Sir/Madam
Account name: A.N. Other
Account number: 12345987
I apologize as I am not going to able to keep up my monthly payments to your organization. This is because I have been keeping unwell and unable to work. I have claimed benefits and am awaiting to hear from the company for the outcome of my claim. My condition is unlikely to change for at least two months.
I enclose a copy of my financial statement along with this letter. This shows the income and the expenses for the past few months. With this financial statement, you will notice that I cannot offer any payments to you at the moment.
I am trying every method to improve my financial condition and shall contact you as soon as my financial situations improve or stabilize.
Meanwhile, it would be very grateful to you if you could agree to freeze interest on my account and stop the other charges that would prevent my debt from increasing. I request you to give me some more time.
Thank you for the help, and I look forward to hearing from you.
Yours faithfully,
Ann Other
Email Format
Given below is the email format of a Hardship Letter to Creditor.
To: xyz@gmail.com
From: abc@gmail.com
Subject: Hardship Letter
Dear Sir/Madam
Account name: A.N. Other
Account number: 12345987
I apologize as I am going to able to keep up my monthly payments to your organization. This is because I have been keeping unwell and unable to work as well. I have claimed benefits and am awaiting to hear from the company about the outcome of my application. My condition is unlikely to change for at least two months.
I enclose a copy of my financial statement along with this letter. This shows the income and the expenses for me. With this financial statement, you will notice that I cannot offer any payments to you at the moment.
I am trying every method to improve my financial condition and shall contact you as soon as my financial situations improve or stabilize.
Meanwhile, it would be very grateful to you if you could agree to freeze interest on my account and stop the other charges that would prevent my debt from increasing. I request you to give me some more time.
Thank you for the help, and I look forward to hearing from you.
Yours faithfully,
Ann Other