32 Simple Financial Hardship Letter Samples | How to Write

When these hardships present themselves at our doorsteps, they often put financial strains on our banks, making us unable to cover our debts, make credits or pay for a mortgage.

Therefore, if you are struggling to resolve your outstanding debts, one of the best things to do is to write an official hardship letter.

A hardship letter refers to a document written by a debtor explaining his or her financial situation and why they are unable to pay a debt. A hardship letter may also refer to a document written by a borrower to request leniency or special consideration due to their financial difficulties. Usually, this letter tends to highlight the following parameters:

  • The debtor’s current financial situation.
  • The reason as to why the debtor is requesting for leniency from the lenders and
  • The debtor’s efforts to overcome the financial situation.

What is the purpose of writing a hardship letter?

Usually, there are various reasons why you need to write a hardship letter. However, before you start writing one, you need to think of the goal you want to achieve with the letter. The following are some of the requests you can request from your creditor using a hardship letter.

  1. If you want to modify your loan
  2. When you want to lower your minimum payments
  3. If you are considering a settlement option
  4. If you agree to a short sale of a property.

Things to Remember when Writing a Hardship Letter

In order to effectively request leniency for outstanding debts, you need to articulate your issues in the best manner possible. Therefore, the following are some crucial tips you need to keep in mind when writing the letter to achieve the best possible result.

Keep the letter original

Typically, the main purpose of writing a hardship letter is to present your sincere, honest, and committed efforts to the lender to loosen the debt repayment terms. That being said, you need to ensure that you convey the right information that is unique to your situation. Also, avoid copying a letter from online sources as it will affect your integrity.

Keep it brief and concise

In many cases, lenders will take the least time possible to read your hardship letter. Therefore, it is recommended that you keep your words brief and direct to the point.

Be specific

In order to convince your lender of your situation, you need to keep it as specific as possible. Also, ensure your request is direct. If you want the interest rates to be lowered, make sure you indicate exactly that. Ideally, if you specify your exact needs, the lender may be compelled to grant you’re your request.

Clearly explain your situation

Explaining your situation is one of the most important things to pay a major focus on. After all, it’s the only part that will get your lender convinced that you are not an irresponsible person. Therefore, take your time and explain your grave situation and why it’s limiting you from settling your debt as earlier intended.

Be simple and professional

When writing a hardship letter, always make sure you use simple language that will make your reader understand you easily. That being said, make sure you refrain from using jargon or fancy words. At the same time, you need to pay attention to the language that you use. According to experts, the language tone should be polite and respectful.

Provide an action plan

In as much as you are seeking help, you need to show your creditor that you have an action plan that will address your situation.

Have your objective in mind

When writing the hardship letter, be sure to keep your objective in mind. Let your reader know that you need their assistance in order to overcome the financial hurdle. In other words, let them know that if they don’t intervene, you cannot succeed in paying the owed debt or mortgage.

Sample Hardship Letter

Dwayne Lucas

200 Bridgeway Street

South Ville, FL 200200

Account number: 200200200


Mr. Carl Jefferson

Loan Officer

Developmental Bank

200 Bridgeway Road

Green Town, FL

Dear Mr. Jefferson,

You might have noted that I am four months behind my mortgage payment schedule. In as much as I fall behind the schedule, I am determined to get the home paid at the earliest of your convenience. Therefore, I am writing this letter to seek your help. I would want to use it to work on a loan modification.

As earlier planned, I intended to pay the mortgage before the end of this year. However, due to unpredictable circumstances, I am having some difficulties. My monthly salary was reduced from $1,500 to $1,000. This was necessitated majorly due to the onset of the Covid19 pandemic that has ravaged the world economy. Based on my current income and the ever-increasing cost of commodities, I am unable to make my regular credit payments.

Therefore, I request you to reduce the monthly mortgage payments from the usual $500 to $100. This reduction will ensure I am financially stable during these tough economic times. I also wish to inform you that the reduction will take a maximum period of 4 months, after which we will resume our normal rates. Meanwhile, I am looking for a second job to help supplement my little earnings.

While I plan to clear the mortgage as agreed, I still need your aid in this endeavor. I genuinely hope that you will work with me as I seek to gain my financial footing once again. Attached are some of my recent pay stubs that you can use as a reference. Just in case you have any questions or concerns, please do not hesitate to reach me at (515) 511511515 or [email protected]

I highly appreciate your time and willingness to help.


Dwayne Lucas

Download Free Templates

Following are free editable hardship letters that can be customized as per need:










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    We currently live in a world full of adversities and uncertainties. Some of these adversities may include mandatory reduced wages, unemployment, pandemics, disability, divorce, medical bills, and increased household expenses, to mention a few. So in these cases, a hardship letter is needed. The above-given guide will allow you to draft your one hardship letter.

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