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Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

When someone faces a financial difficulty, it can be an overwhelming and disheartening experience. A financial hardship letter is an important tool for individuals to articulate their current financial situation and make an appeal for assistance. Crafting a compelling and convincing letter takes careful thought and planning; it should succinctly explain the individual’s circumstances while providing clear reasons why they are deserving of assistance.

The ��������Ƶ team has developed ‘the world’s largest open source legal template library’, with millions of data points teaching its AI what a market-standard financial hardship letter looks like. Our community of over 15 million users have used our template library to customize high quality legal documents, without having to pay a lawyer or write out their own.

When writing a financial hardship letter, individuals must include key details such as their work history, other sources of income, contributing factors to the current difficult situation, along with an emotionally appealing argument as to why they are deserving of assistance. It is also important that the language used is respectful and professional in order for the recipient to take away all the vital information needed from the letter.

At ��������Ƶ we want everyone to be able to access our free template library so that anyone can draft customized letters which will give them greater control over their individual situations than if they had not written one at all. By following our step-by-step guidance, anyone can easily access our templates today - no account required! Read on below for more information about how ��������Ƶ can help you write your own powerful financial hardship letter today.

Definitions (feel free to skip)

Financial Hardship: A difficult financial situation caused by job loss, health issues, or other unexpected expenses.
Request: A demand or request for something to be given, done, or provided.
Extenuating Circumstances: Special or unique factors that affect a situation and may serve to lessen the severity of an offense or penalty.
Commitment: A promise or pledge to do something.
Resolving: To find a solution to, or to come to an agreement about something.
Appreciation: A feeling of gratitude, admiration, or acknowledgment.

Contents

• Prepare a formal letter of request
• Introduce yourself and explain your financial hardship.
• Describe the specific assistance you are seeking.
• Explain how the assistance will improve your financial situation.
• Discuss any extenuating circumstances that have caused your financial hardship.
• Demonstrate your commitment to resolving the financial hardship.
• Thank the reader for their time and consideration.
• Gather any relevant documents and information that may be helpful in evaluating your request.
• Ask a trusted friend or family member to review your letter before sending it.
• Address the letter to the appropriate contact person or department.
• Double-check that all information is accurate and complete.
• Print out a copy of the letter for your records.
• Place the letter in an envelope, along with any documents or information.
• Address the envelope correctly and add any necessary postage.
• Mail the letter and documents or information.
• Follow up with the contact person or department to ensure they received your request.

Get started

Prepare a formal letter of request

• Gather all the necessary information such as your name, address, financial details, etc.
• Compose a professional letter, addressing the recipient appropriately.
• Include a clear and concise subject line.
• Stick to the point and remain polite but firm in your request.
• End the letter with a complimentary close, such as “Sincerely”, your signature, and your name.
• Proofread the letter to ensure accuracy.

You will know you can check this off your list and move on to the next step when you have written a formal letter of request with all the necessary information, a clear and concise subject line, polite but firm language, and a complimentary close.

Introduce yourself and explain your financial hardship.

• Start your letter with an introduction of yourself and your situation, including your current address and contact information
• Explain the financial hardship you are facing and how it has prevented you from meeting your financial obligations
• Provide a brief overview of your current financial situation, including any debts you may have and your current income
• If you have any financial assets, be sure to mention them and explain how you are using them to address the hardship
• End the introduction by expressing your desire to resolve the issue and thanking the reader for their time and consideration

Once you have introduced yourself and explained your financial hardship, you can check this step off your list and move on to the next step.

Describe the specific assistance you are seeking.

• Identify the exact type of assistance you are requesting from the creditor.
• Outline the amount of assistance you need and how long you need it for.
• Include any other relevant details that support your request.
• Proofread your letter to make sure it is accurate and error-free.

You will know you have completed this step when you have included the specific assistance you are seeking in the letter.

Explain how the assistance will improve your financial situation.

• Provide a detailed explanation of how the requested assistance will improve your financial situation.
• Outline a plan of action that will help you manage your finances responsibly after the assistance.
• Discuss any steps you have already taken to improve your financial situation.
• Include a clear timeline for how long the requested assistance will be needed.
• Once you have included all the necessary details, you can check this step off your list and move on to the next step.

Discuss any extenuating circumstances that have caused your financial hardship.

• List all the extenuating circumstances that have caused your financial hardship, such as job loss, medical bills, or natural disasters
• Explain how each circumstance has contributed to your financial hardship
• Provide as much detail as possible, such as dates and specific amounts of money
• Make sure to provide any evidence that you have, such as pay stubs or medical bills
• When you have provided all the details for each extenuating circumstance, you can check this step off your list and move on to the next step.

Demonstrate your commitment to resolving the financial hardship.

• List actions you have already taken to attempt to resolve the financial hardship, such as paying down debt or finding alternate forms of income.
• Explain the steps you are taking to ensure the financial hardship is resolved in the future.
• Demonstrate that you are taking the necessary steps to pay off your debt by outlining a repayment plan.

Once you have listed the actions you have taken, and the steps you are taking to ensure the financial hardship is resolved in the future, you will be ready to move on to the next step.

Thank the reader for their time and consideration.

• Begin the letter by expressing your gratitude for the reader’s time and consideration of your request.
• Thank them for taking the time to read your letter and for considering your financial hardship.
• Show your appreciation for the reader’s understanding of your situation.
• Once you have expressed your gratitude in the letter, you will have completed this step.

Gather any relevant documents and information that may be helpful in evaluating your request.

1. Collect documents such as bank statements, pay stubs, tax returns, and/or any other financial documents that can provide evidence of your financial hardship.
2. Make a list of any other relevant information that can support your case, such as medical bills or job loss.
3. Ensure you have the correct contact information for the recipient of the letter (if applicable).
4. Once the necessary documents and information have been gathered, you can move on to the next step.

Ask a trusted friend or family member to review your letter before sending it.

• Ask a trusted friend or family member to review your letter for accuracy, clarity, and flow.
• Make sure the letter is clear and concise.
• Ask for feedback on any areas that may need more explanation or clarity.
• Make any changes or revisions based on the feedback you receive.
• When you are finished making any changes, you will know that this step is complete and ready to move on to the next step.

Address the letter to the appropriate contact person or department.

• Make sure to get the correct name of the person to address the letter to, as well as their title and the department they work for.
• If you don’t know who to address the letter to, contact the organization and ask for the appropriate contact person.
• Once you have the necessary contact information, include the person’s name and title at the start of the letter.
• You’ll know this step is completed when you have the contact information written at the top of the letter.

Double-check that all information is accurate and complete.

• Carefully review the financial hardship letter for any typos, grammar, or spelling errors
• Check that all information is accurate and complete, and that all relevant documents are included
• Make sure the letter is clear, concise, and presents all the necessary information
• Once you are sure that all information is accurate and complete, the step is complete and you can proceed to the next step.

Print out a copy of the letter for your records.

• Find a printer, or use a computer connected to a printer.
• Print out a copy of the letter, double-checking that all information is accurate and complete.
• Make sure the printer is set to print on the correct paper size.
• Make sure the printer has enough toner or ink to print a clear copy.
• Once the letter is printed, check it again to make sure all information is accurate and complete.
• Sign and date the printed copy.
• Keep the printed copy for your records.
• You will know you can check this off your list and move on to the next step when the printed copy is signed and dated.

Place the letter in an envelope, along with any documents or information.

• Place the printed letter, along with any other documents or information you need to provide, into an envelope.
• Make sure the envelope is sealed and all items are secure.
• You know you have completed this step when you have an envelope with the letter and documents inside ready to be mailed.

Address the envelope correctly and add any necessary postage.

• Check the address of the recipient of the hardship letter
• Check the postage requirements for the envelope
• Add the required postage to the envelope
• If you’re sending documents or information with the letter, make sure they are in the envelope
• Make sure the envelope is securely sealed

Once you have correctly addressed the envelope, added the necessary postage, and have made sure the documents or information are included in the envelope, you can check this off your list and move on to the next step.

Mail the letter and documents or information.

• Gather up all the documents or information requested by the contact person or department
• Place the letter and documents or information into an envelope
• Seal and address the envelope correctly
• Affix the necessary postage
• Use a service that provides tracking if possible
• Drop the letter into a mailbox
• Check your tracking information or contact the contact person or department to confirm that the letter was received
• You’ll know when you can check this off your list and move on to the next step when you get confirmation that the letter was received.

Follow up with the contact person or department to ensure they received your request.

• Contact the person or department listed in the letter to confirm they have received your request
• Make sure to note the name of the person you speak to and the date you contacted them
• Ask if there are any additional documents or information they need from you
• Make sure to ask what the next steps are and the timeframe they are expecting
• When you receive confirmation that the letter has been received, you can check this off your list and move on to the next step in the process

FAQ:

Q: How does the form of a financial hardship letter vary from country to country?

Asked by Evan on May 5th 2022.
A: The form of a financial hardship letter can vary from country to country, depending on the laws and regulations in place. In the UK and USA, for example, there are different legal requirements when it comes to writing a financial hardship letter. In the EU, the regulations may be slightly different again. Generally speaking, it is important to ensure that any letter you write is tailored to the specific laws and regulations of your own jurisdiction.

Q: What does a financial hardship letter need to include?

Asked by Tracey on October 12th 2022.
A: A financial hardship letter should include an explanation of why you’re in financial difficulty and how you plan to resolve it. It should also include details of your current financial situation, such as income, expenditure and debts, as well as any other information pertinent to your situation. It’s important to be honest and open about your finances and provide evidence where possible.

Q: How do I know if my financial hardship letter is successful?

Asked by Ashley on April 4th 2022.
A: You will usually receive confirmation if your financial hardship letter has been successful. This could take the form of an email or telephone call from the lender or creditor confirming that they have accepted your request for assistance or other type of help. If you don’t receive confirmation, it’s important to follow up with them as soon as possible to ensure that your request has been received and processed correctly.

Q: Does writing a financial hardship letter guarantee success?

Asked by Justin on November 22nd 2022.
A: Writing a financial hardship letter doesn’t guarantee success but it can be an effective way of showing a lender or creditor that you’re serious about resolving your financial difficulties and making positive changes for the future. It is important to ensure that your letter is clear and concise and includes all relevant information requested by the lender or creditor. However, there is no guarantee that your request for assistance will be accepted.

Q: How long should a financial hardship letter be?

Asked by Isabella on August 15th 2022.
A: The length of a financial hardship letter can vary depending on your individual circumstances. Generally speaking, it should be concise and not exceed one page in length unless absolutely necessary. It should include all relevant information without going into unnecessary detail or complexity; focus on key points and make sure that any relevant evidence is included where applicable.

Q: Is it possible to write a joint financial hardship letter?

Asked by Michael on July 8th 2022.
A: Yes, it is possible to write a joint financial hardship letter with another person if you both have a shared interest in resolving the issue at hand. It is important to note that each person should provide their own independent evidence and information regarding their own individual finances and circumstances, as this will help strengthen the overall case presented in the joint letter.

Q: What language should I use in my financial hardship letter?

Asked by Emily on June 13th 2022.
A: The language used in a financial hardship letter should be professional yet clear and concise. Avoid using overly technical language or jargon as this may confuse the reader or make them less likely to understand your situation correctly. Make sure that any legal terms used are explained clearly so that anyone reading your letter can understand what you are trying to say without having to consult external resources or sources of information.

Q: What do I do if my lender or creditor rejects my request for assistance?

Asked by Matthew on March 19th 2022.
A: If your lender or creditor rejects your request for assistance after receiving your financial hardship letter, it’s important not to panic or give up hope immediately. It may be worth contacting them again with more detailed evidence of your current circumstances and situation, or seeking advice from an independent expert who can help you make sense of the situation and advise on what action you can take next in order to resolve any issues you may have with your lender or creditor going forward.

Q: How do I know if I need a financial hardship letter?

Asked by Jessica on December 4th 2022.
A: If you are struggling financially due to an unexpected event such as an illness, job loss or unexpected bills then it may be worth considering writing a financial hardship letter in order to explain your situation to lenders or creditors who may be willing to provide some assistance with resolving your difficulties even if they cannot offer support in full at this time. It’s important to remember that writing a financial hardship letter does not guarantee success; however, it can provide an opportunity for lenders or creditors who may otherwise not consider providing assistance with resolving difficult financial situations due to lack of evidence provided by individuals seeking help in such instances.

Q: Do all lenders/creditors accept requests for assistance made through a financial hardship letter?

Asked by Sarah on September 21st 2022.
A: Not all lenders/creditors accept requests for assistance made through a financial hardship letter; however, many are willing to consider such requests provided they are accompanied with sufficient evidence demonstrating why an individual needs help resolving their current difficulties with their finances at this time. Ultimately each lender/creditor will make their own decision based upon their own criteria; however, writing a carefully thought out and well-structured financial hardship letter demonstrating why assistance is needed at this time can significantly increase the chances of success when seeking help with difficult financial problems from lenders/creditors at this time.

Q: What other types of evidence should I include in my financial hardship letter?

Asked by David on January 23rd 2022.
A: In addition to detailing why you need help resolving your current difficulties with finances at this time in your own words, it’s important that any evidence included in your financial hardship letter is accurate and up-to-date so that lenders/creditors can gain a full understanding of your current circumstances when making their decision about how best to support individuals facing difficult times financially at this time going forward. Examples of appropriate evidence could include recent pay slips showing income levels over recent months; bank statements showing expenditure over recent months; letters from employers explaining changes made recently which have impacted finances; letters from medical professionals if illness has affected income levels; etc…

Q: Are there any tips for writing an effective financial hardship letter?

Asked by Samantha on February 18th 2022 .
A: Writing an effective financial hardship letter requires careful consideration of both language used throughout (i.e., making sure it is clear yet professional) as well as providing supporting evidence where applicable (i.e., pay slips over recent months; bank statements detailing expenditure over recent months; etc). Additionally, it’s important that individuals provide detailed yet concise explanations regarding their current circumstances so that lenders/creditors are able to gain an accurate understanding of why help may be needed at this time without having to read through long documents containing unnecessary detail which could detract from what actually needs explaining clearly at this time going forward

Example dispute

Suing a Company for a Breach of Contract:

• Plaintiff must provide evidence of a breach of contract, such as a financial hardship letter, to demonstrate that the defendant failed to fulfill their duties under the agreement.
• Plaintiff must prove that the breach of contract caused them financial harm.
• Plaintiff may be entitled to compensatory damages, which are designed to place the party back in the same position they were in before the breach of contract occurred.
• Plaintiff may also be entitled to punitive damages, which are intended to punish the breaching party and deter similar conduct in the future.
• The amount of damages can be determined by an expert witness or an economic analysis.
• Settlement of the dispute may be negotiated or a court order may be necessary.

Templates available (free to use)

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