Despite your best efforts, you may run across roadblocks that prohibit you from meeting your financial obligations and other commitments.
An injury, the loss of a significant source of income, or the need to make an emergency payment can all throw a wrench into your carefully planned budget.
Trouble Paying Off Your Bills?
Consider writing a hardship letter if you’re having trouble paying off your bills. These letters inform credit card companies, banks, and lenders of your financial condition and offer suggestions for how they might help you resume regular loan repayment.
Hardship letters are an important aspect of debt relief. If you owe money and need to set up a payment plan, a letter may be just what you need to persuade your creditors to cooperate with you.
Template 1: Explaining a Reduction in Income Due to Job Loss
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[Recipient’s Name]
[Recipient’s Address]
[City, State ZIP Code]
Dear [Recipient’s Name],
I am writing this letter to request a hardship modification to my mortgage payments due to a significant reduction in my income. Unfortunately, I lost my job recently, and I have been struggling to make ends meet ever since. The loss of my job has left me with little financial resources to pay for my monthly mortgage payments.
Before my job loss, I was making [previous income amount], which allowed me to make my mortgage payments on time. Unfortunately, I have been unable to find a job that pays me the same salary or better. I am now working in a part-time position that pays only a fraction of my previous salary.
As a result, I am experiencing severe financial difficulties, and I am struggling to pay my bills. I have exhausted all my savings and have no other source of income to keep up with my mortgage payments. I am now turning to you to request a hardship modification to my mortgage payments.
I would appreciate it if you could consider my request for a hardship modification and provide me with any assistance that you can offer. I am committed to doing everything in my power to get back on track with my mortgage payments and get my finances back in order.
Thank you for your understanding and support.
Sincerely,
[Your Name]
Template 2: Explaining a Reduction in Income Due to Health Issues
[Your Name]
[Your Address]
[City, State ZIP Code]
[Date]
[Recipient’s Name]
[Recipient’s Address]
[City, State ZIP Code]
Dear [Recipient’s Name],
I am writing this letter to request a hardship modification to my mortgage payments due to a significant reduction in my income. Unfortunately, I have been experiencing severe health issues that have significantly impacted my ability to work and earn a steady income. The resulting reduction in my income has made it difficult for me to keep up with my monthly mortgage payments.
Before my health issues, I was making [previous income amount], which allowed me to make my mortgage payments on time. However, my health condition has made it impossible for me to continue working full-time. I have had to reduce my work hours, and my income has been significantly reduced as a result.
I am now experiencing severe financial difficulties, and I am struggling to pay my bills. I have exhausted all my savings and have no other source of income to keep up with my mortgage payments. I am now turning to you to request a hardship modification to my mortgage payments.
I would appreciate it if you could consider my request for a hardship modification and provide me with any assistance that you can offer. I am committed to doing everything in my power to get back on track with my mortgage payments and get my finances back in order.
Thank you for your understanding and support.
Sincerely,
[Your Name]
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