How to Write a Hardship Letter to a Creditor

  • Are your credit repair clients stuck in a spiral of debt and--due to unusual circumstances--can’t make their monthly payments?
  • Sometimes life can be rough and clients may need some extra help or time while they start new, healthier financial habits.

Write a hardship letter to creditors on behalf of your client.

Read on to learn:

  • When it’s appropriate to send a hardship letter
  • What should be included in a hardship letter
  • How a hardship letter can help clients get back on track


Hardship Letter

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When to use a hardship letter

A hardship letter can be written to any of a client’s creditors directly to inform them of a hardship that is keeping the client from making normal payments. This letter should be used when clients are truly struggling and need some extra help. When a creditor understands what’s going on behind your client’s late payments, they may be able to offer different options for your clients.

There are many types of hardships and particular circumstances that can keep a client from choosing better financial habits. The most common include:

  • Unemployment
  • Illness or medical emergency
  • Divorce or separation
  • Military service
  • Death in the family
  • Incarceration

Download the hardship letter template

What do I include in a hardship letter?

Each hardship letter should be written specifically for your client’s circumstance. Here’s the information you need to include in each hardship letter:

  • Client’s personal information: Remember, this letter (like all the other dispute letters) is coming from your client and should reflect their information, not yours as the credit repair company
  • Description of the hardship: Write a concise and honest description of the hardship (this should not be lengthy or overly exaggerated)
  • Request for a specific outcome: Objectives will be specific to each situation and client, and are something you will determine during a consultation with your client

Examples of specific requests

Credit Card Debt Hardship Letter
  • Adjust interest rate
  • Lower monthly minimum payment
  • Lower fees and penalties

Mortgage Hardship Letter
  • Loan modification
  • Request a short sale
  • Set a time frame to bring payments up-to-date

Hardship Letters for Other Debt
  • Settlement options
  • Fixed payment schedule
  • Suspend a past amount

Download the hardship letter template