Where can you find a sample of a 'hardship letter'?

"Hardship" is a term used to describe why a consumer has not made their payments to a creditor. It is unlikely that you will find such a letter anywhere because each individual's circumstances are, by definition, unique.

A hardship letter may be used in communication with the original creditor to help explain why payments have been delayed, but should also include a plan to resolve any delinquency. A hardship is NOT an acceptable reason for not paying the debt.

Explain your circumstances and show how you plan to resolve the problem. If you delay in your communication with the creditor, they may get the impression that you don't plan to work out a repayment plan. If that happens they can send it to a collection agency. Believe me, you do not want THAT to happen. Communicate with your creditor now, while you still can.

Here are some main points for writing a hardship letter are:

1. Subject Line Request - Right off the bat let the loss mitigator know what you are requesting.

2. Brevity - Don't let your financial hardship letter go on for page after page. Keep it as short as possible.

3. Personal - Let the loss mitigator get to know you and your circumstances.

4. Clarity - Get your points across in the clearest possible way and then provide a summary.

5. Information - Make sure you leave nothing out of your financial hardship letter. Attach important information such as bank statements, cash flow documents, income tax statements, letters of reference, etc.

6. Be Appreciative - The person reading this financial hardship letter did not get you into this mess but he or she is the one that can help you out of it. So be thankful and humble in your tone.

The hardship letter is not the only tool in your chest for a financial reprieve but it is by far one of the most important. So make it your prime instrument when dealing with the bank and get it in soon.