Financial Hardship Letter

World economy has been deteriorating recently with many people losing their jobs and several business closing down. Job security is very rare and the volatile economic times have put people under a lot of stress and burden.

We live in a world of credit, where every other person has a debt to pay off. With the curse of interest attached to it, it can become impossible to pay off your debt at times. In such a scenario, you can write a financial hardship letter to your creditor, communicating your inability to pay your bills. Loans or credit can be written-off in genuine cases.

In the first paragraph, explain how you took the loan and also mention your past relationship with the creditor. Then state your present scenario and how you have failed to make payments on time. Request the creditor to reschedule your loan and mention that you will make your efforts to make payments on time in future.


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    Sample of financial hardship letter

    January 10, 2013
    Bank of America
    Main Boulevard, Manhattan, 55500

    Dear Sir/Madam,

    I have been working for a private firm in Manhattan for almost eight years now. However, due to the ongoing recession, I have been laid off. I am presently finding it hard to find employment and meet my personal expenses.

    I have tried my level best but since the last couple of months I have not been able to pay my monthly installment to the Bank of America. I have been a customer of Bank of America for many years now and I understand that it is my responsibility to pay off my bills.

    I am writing this letter to request for a loan modification and hope that my monthly payments can be reduced.

    I am working extremely hard to find a job and do intend to pay off my debt at the earliest. Once I get employed, I will make sure that I pay my monthly installment on time.

    I have attached proof of my Income, late notices, bank statements, medical bills and tax forms with the letter. Kindly let me know if you have any questions.

    I expect a positive response.

    Simon Moore
    P.O Box 44000
    Phone # xxx-xx-xxxx

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    Template of a Financial Hardship Letter


    To whom it may concern,

    I am unable to pay my monthly payments as per my regular schedule as I have been recently unemployed. I am trying my best to get a job as soon as possible but I request my bank to reschedule my payments so that I can easily pay off my debt.

    I expect my bank to understand my situation and cooperate with me. I will contact you in person soon to explain my problem.

    Please feel free to contact me if you need any further information.

    Phone # xxx-xx-xxxx

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