How to Write a Hardship Letter to Creditors

Learning how to write a hardship letter can help if you want to explain a debt to a creditor and ask your creditor for some relief. Because of unfortunate circumstances, home or business owners are sometimes unable to make their scheduled mortgage payments. When this occurs, writing a hardship letter to a creditor is a wise option. Debt creditors are sometimes difficult to convince, but a well-written hardship letter might move them to offer you a little help.

Explaining Your Situation
For a hardship letter to be effective, it must include detailed descriptions of your situation. After an introduction, begin the letter by describing concisely if you have been ill, lost a job or have been the victim of unforeseen negative events.

Using Documentation
Hardship letters are tools to convince creditors that payment should be delayed. As such, documentation is important. Any documents you have that validate your claims should be described in the letter and included within. These documents can be medical records, divorce papers, property damage assessments or any other relevant papers that support your case. Be sure to make and send copies to your creditors, as you might need the original documents later.

Signatures and Formalities
At the end of the letter, be sure to include your signature, phone number and address. Also, include the signature of a co-signer if possible. If you have a specific account number with the creditor, include that as well.

A Word About Emotion
Hardship letters must appeal to the creditors. While creditors are particularly interested in numbers, facts and your ability to pay off the debt, a touch of emotional sentiment can go a long way. Let the creditors know that you are suffering, and perhaps feel ashamed. Letters that are demanding and indignant don't have a great chance. Not all creditors are bad creditors, so keep your letter respectful.

The Importance of Hardship Letters
Hardship letters communicate actual struggles, so a simple, honest letter can be effective. Creditors ultimately want their money, but they might be more flexible if they know your specific situation. With a little knowledge, you can write a strong hardship letter that can assist you in conquering your financial struggles.