How do you write a financial hardship letter to creditors?


Quick Answer

When writing a financial hardship letter to creditors, the individual should explain why he is unable to pay his debt, explain his plan of action for taking care of the debt and express his desire for a mutually beneficial resolution, says Chron. The letter should also include contact information.

Continue Reading

Full Answer

The opening paragraph of the hardship letter should include how much the individual owes and how long he anticipates the debt going unpaid, notes Chron. If possible, the writer should also include a payment schedule to show he is willing to take action to resolve his debt. While explaining the events that led to the hardship, the writer should be detailed and honest while leaving out as much emotion as possible. Including only facts is usually the best way to bring about a positive response.

While creating a plan of action in the hardship letter, the writer should only make promises and guarantees he can keep, says Chron. The individual should also include any lifestyle changes he is making in order to take care of his debts, such as cutting back on unnecessary spending and clipping coupons.

The hardship letter should also mention interest payments, notes Chron. Doing so can show the creditor how thorough the individual's plan of action is and that he has taken the proper steps to truly paying off his debt in full.

Learn more about Credit & Lending

Related Questions