Sample Letter to Creditor Unable to Pay

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Learn how to write an unable to pay letter to creditor. Use our sample unable to pay letter to creditor as a template for your hardship letter.

Sample 1 – Letter to creditor Unable To Pay

Linda Gibson
2300 Action Street
Oakland, CA, 94703

May 17, 2022

ABC Debt Company
3245 – 11th Street
Portland, OR, 97206

RE: Unable to pay debt for account number [NUMBER]

To Whom It May Concern,

I am writing this letter to inform you that I am temporarily out of work, which has caused serious financial difficulty for my family. 

I have workers’ compensation as well as unemployment, but these are just enough to pay my mortgage and feed my family.

Because of my hardship, I am unable to pay my debt, so I’m asking each creditor to kindly accept a reduced payment of $100 for the next six months. 

I expect to be back to work and receiving my full salary by that time. If I am able to work sooner, I will inform you and return to making the usual payments of $250 per month.

I prefer to deal with you directly and not a collection agency. I fully intend to pay my debts, but I need a bit more time. I also request that you withhold any interest on my debt for the next six months.

Please send a response to this letter in writing at the address above. I can also be reached at 555-123-4447 and at 

Thank you for taking the time to consider my request, and I hope to have a favorable reply.


Linda Gibson

Sample 2 – Letter To Creditor Unable To Pay

Your Name
Your Address
City, State, Zip Code


Name of Creditor
Address of Creditor
City, State, Zip Code

RE: Unable to pay debt for credit card account number [NUMBER]

Dear Sir/Madam,

I have held [Name of Credit Card] since 1990, and always made regular payments. Due to physical hardship, I have lost my job and am living on unemployment checks for the past three months. 

I was a bus driver for [Name of School District] but broke my leg in a skiing accident, through no fault of my own, and will be laid up for the next six months.

I have included the medical documents and unemployment check records. My salary has been reduced from $40,000 per year to $25,000 per year, and I need to make a monthly $800 payment on my mortgage, or I will lose my home. 

Because of the drastic change in my financial status, I am unable to pay my debt. So, I’m asking for help with the balance of $2,000 and late fees I owe on this credit card.

I would like to know if you have a program to assist hardship cases. I need to pay off the balance and close this account. 

I would be happy to work with you to achieve a resolution that is satisfactory to both of us. 

I have included all the documentation that relates to my medical bills, current income and previous payment record.

I can be reached at [Phone Number] or at [Email Address] if you have any questions. I hope the situation can be resolved soon.

Thank you for your attention to this matter.


Printed Name
List of Enclosure

Frequently Asked Questions (FAQs)

1. What should I do if I am unable to pay my creditors?

Answer: If you are unable to pay your creditors, it is important to communicate with them as soon as possible. You should inform them of your current financial situation and ask for a payment plan or other alternative arrangement. 

It is also important to prioritize your debts and focus on making payments on the most important debts first, such as mortgages or car loans.

2. Can creditors take legal action against me if I am unable to pay?

Answer: Yes, creditors can take legal action against you if you are unable to pay your debts. This can include wage garnishment, property liens, or even lawsuits. It is important to communicate with your creditors and work with them to find a solution before legal action is taken.

3. Can I negotiate with creditors to lower my debt?

Answer: Yes, you can negotiate with creditors to lower your debt. This can include negotiating a lower interest rate, a reduced payment plan, or even a debt settlement. Creditors may be willing to work with you to find a solution that is mutually beneficial.

4. What is a debt management plan?

Answer: A debt management plan is a repayment plan that is typically set up by a credit counseling agency. It involves consolidating your debts and making one monthly payment to the credit counseling agency, which in turn pays your creditors.

5. How can I contact a credit counseling agency?

Answer: You can contact a credit counseling agency by searching online or checking with the National Foundation for Credit Counseling. They can provide you with a list of reputable agencies in your area.

6. Can filing for bankruptcy help me if I am unable to pay my creditors?

Answer: Filing for bankruptcy can be a solution for individuals who are unable to pay their creditors. It can provide relief from overwhelming debt and may stop legal action from creditors. 

However, it will have a negative impact on your credit score and should be considered as a last resort. It is important to seek professional legal advice before taking this step.

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