How to Write a Hardship Letter?

A hardship letter is written to a bank, financial institution, broker to explain the bad financial times an individual is going through. This letter helps an individual to discuss his financial status with the creditor. In this type of letter, a person can mention the problems that have lead him or her in financial troubles where he cannot pay the loans. The person asks for a solution for his financial problems in form of a request to grant him a mortgage loan, debt consolidation loan, etc.

This sort of letter is written in situations like a person is not in position to pay college fees and asks to reduce the fees, hospital to reduce the medical bills for some genuine reasons, etc. The letter is used as a means of communication to the company who has provided a loan about your inability to pay installments on time and finding a remedy to eradicate the financial difficulties. The letter should be written in a soft and polite tone. This letter is your last resort to end your financial difficulties hence, the letter has to be drafted carefully and effectively.

Here are some tips that will help you in drafting a hardship letter:

  • The letter has to be short. Make it a one page letter. The creditor does not have time to read a long letter. The letter has to be to the point and specific.

  • The letter should be personalized as much as possible. The letter should describe your financial problems in depth. The letter should aim at how your family and you are suffering due to the financial crunch.

  • In the very beginning of the letter clearly state your problem. Even if the situation may be critical and genuine, you need to mention it in detail. That will help the reader in helping you in getting out of financial troubles.

  • The letter should give enough information about your financial problem. You can attach documents like tax statements, quarterly bank statements, etc. to prove you bad financial state. If you had to put in a lot of money for medical treatment of your family member and that has left you with debts than you can attach medical bills. This will make the things clear to your creditor.

  • In the opening paragraph of the letter, you request the creditor to help you in this difficult situation. In the letter, you exactly state your request of mortgage loan, debt consolidation loan etc. that will help you in dealing with your financial problems.

  • The letter should be an honest attempt. You have to be humble in writing this letter. Do not blame any person for your troubles. Accept the mistakes that you have committed and which have resulted in a financial crisis. When you are closing the letter, thank the recipient in advance for considering your case.

See types of Hardship Letter :

  • Sample Hardship Letter
  • Hardship Letter for Debt Consolidation

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