What Is the Purpose of a Hardship Letter?īefore you begin drafting, you need to decide on the goal of the letter. Show that you are willing to find a solution together with a reasonable request and a commitment to repay what you owe.
No matter what your reason is, it is important to be open and honest with your lenders. The most common examples of hardship include: Some reasons might be purely financial while others may center around major life events. There are a variety of situations that may qualify as a hardship. Lenders may use them to determine whether or not to offer relief through reduced, deferred, or suspended payments. What Does Hardship Mean?Ī financial hardship occurs when a person cannot make payments toward their debt.įinancial hardship letters are the best way to explain why your account is behind. If you have bills to pay or need a payment plan to catch up, a letter may be the right nudge you need to convince the lenders to work with you. Hardship letters can be a crucial part of your debt resolution. These letters explain financial situations to credit card issuers, banks, or lenders and propose some way they can help you resume regular loan repayment. If struggling to resolve outstanding debts, consider writing a hardship letter. Suffering from an injury, losing a key source of income, or making an emergency payment can throw a wrench in your carefully thought-out budget.
SAMPLE LETTER FOR HARDSHIP CREDIT CARD DEBT HOW TO
How to Write a Hardship Letter – The Ultimate Guideĭespite your best efforts, you might face obstacles that prevent you from fulfilling financial obligations and other promises.