You may have gone through some unwanted financial crisis on account of either struggling for achieving something or due to some sudden incidents.
Well, it is life, the ups and downs, rise and the fall, poverty and wealth, misery and prosperity, serious illness and health, have and have not etc. are the binaries and may occur one after another.
If you are struggling through some financial crisis, do not worry, letter of hardship may be the remedy for your speedy or gradual recovery. This study is all about the hardship letters, its types, purposes, etc.
Table of Contents
What Is Letter of Hardship?
A hardship letter is the expression of the financial situation and the request for the financial aids for sometimes written to the lender, creditor, immigration, college, and many more organizations with intent to seek financial assistance.
In hardship letters you write the causes of the financial crisis and the possible solutions along with the request of getting some time in the payment plan of pending dues and the debts after sharing your bank statements.
If you are struck by illness, unemployment, inflation, death, or any other incident then think of writing a request for the concession to the lender or creditor.
Suggested Reading: The Layoff Wells Fargo
Purposes of Hardship Letters?
The main purpose of the letter of hardship is the request for the concession in your pending dues, debts, installments, and countless more by providing all the causes of your situation and the possible mutually beneficial solution with the promise of paying back all the conceded amounts.
You may write a hardship letter for immigration seeking asylum in a country, reducing your interest rate to lower payment amount waiving late fees, temporarily pausing your monthly payments, modifying your loan, settling your debt payments for less than you owe and forgiving past-due payments.
Who Writes Hardship Letters?
If you are struck by illness, unemployment, inflation, death, or any other incident then think of writing a request for the concession to the lender or creditor.
In the letter, you write the causes of the financial crisis and the possible solutions to the lenders, creditors, immigration, or college along with the request of getting some time for the payment of pending dues and the debts.
To whom The Letters are written?
You can write financial hardship letters to the lenders, creditors, immigration, bank manager, the company you are working in, the company with which you have made some deals of installments, to the landlord, to the college for financial aid, and to every one of which you are seeking some financial concession.
You may write a hardship letter for immigration seeking asylum in a country, reducing your interest rates for lowering your payment amount waiving late fees, temporarily pausing your monthly regular payments, modifying your loan, settling your debt for less than you owe and forgiving past-due payments.
Types Of Hardship Letters
The common types of the letter of hardship are the following: -
For Asylum
This hardship letter is for immigration seeking asylum in a country. If you have any threat in your own home town, you can claim your asylum with this type of letter of hardship.
Financial Aid in College
This hardship letter includes the request of financial aid to your college that you cannot submit your dues on time due to financial problems.
For Landlord (Rent)
You are requesting that you will pay the rent in the next month as you have either lost the job or the payment has not been made to you.
Loan Modification
Loan modification is the type of letter through which you can request for the modification in the loan you have got for something while facing financial crisis.
Payments of Medical Bills
A letter seeking payments against Medical bills, which you already paid and need reimbursement or the payment has become due.
For Mortgage
In the hardship letter for mortgage payments, you can write in a request that a security you are willing to keep something with them in the return of their financial support against mortgage assistance to satisfy claim of mortgage lender in the given financial strain.
Strategies to Approach Organizations
All organizations are not the same, different organizations respond differently according to their own strategies.
It is not all ways mandatory to write a letter of hardship to the organizations, some directly speak on a phone call and make a request for the financial aid system. Some of them have an online form, the one requesting for the financial support would fill the form.
The good example is the method of Chase Bank who has online requesting method for the hardship request, they do not write hardship letter for mortgage payments.
Financial Hardship Examples?
You might be thinking that what hard situations would be considered for the financial aid, so not all the financial circumstances are considered the financial hardships. The situations that are out of control for an individual are most likely considered the financial hardships.
The financial hardship examples are the following; loss of employment, natural disaster, reduction of income or work hours, job transfer, military transfer or deployment, death of a spouse, medical expenses stemming from a severe illness or injury, divorce or separation, and countless more.
What are not Financial Hardships?
Not all the unforeseen circumstances are considered the financial hardships, some of them may be hardships for you but you cannot claim those for the financial aid.
It may be assumed that the circumstances that are beyond your control may not be considered as the financial hardships.
For instance the voluntary change in employment, luxury purchases and nonessential spending, costs for higher or continuing education, personal investment losses, expenses for criminal legal proceedings.
What to Consider for Writing Hardship Letter
The things which should be considered before writing a letter of hardship are: -
Writing A Hardship Letter
It is very easy to write a letter of hardship, just follow some basic steps and prepare a phenomenal and impressive letter of hardship: -
a). Start with Introduction
The first step of the letter of hardship should include all your personal details, for instance your name, your account details and the reasons of writing a letter. The sample of the letter is as follows: -
b). Mention Details of Hardship
You must mention all your hardships in very direct and straight forward manner along with the causes like job loss, medical urgency, illness, death, divorce, etc.
c). Add efforts to handle hardship
The third step must be highlighting that how are being conscious about your financial hardships, state the steps you have taken for overcoming the hardships but the situations went out of control. Explain whatever you did like, you have sold your property, cut off your personal expenses etc.
d). Explain Significance of granting Relief
The main thing to convince them is by stating your situation may go worse leading to worsening disability if they are not ready to help you and also mention the consequences urging them in any way to extend you financial relief.
e). Specify the Requirement
The important one is stating your request in the letter. In this part you ask directly what you are writing about, what is the purpose of your request while writing this letter. Sate what you actually want, extend the dates of installments, lower the limit of installments, modify the loans, etc.
f). Providing Assurance Of Recovery
The concession you are planning to get in your financial hardship letter explains whatever must be returned the form of financial assistance to the organizations, so you must have to make a promise of returning the money you have borrowed.
g). Submit Supporting Documentation
At the end of the letter of hardship greet and thank him in advance and show them that you are very much hopeful for their financial support in terms of living expenses and payment extensions.
After that attach all the supporting documentations along with the letter of hardship, is the best policy, while writing a letter of hardship you must always be very honest. Avoid making false claims and fake evidences.
Conclusion
A letter of hardship is the expression of the financial situation and the request for the financial aids for sometimes written to the lender, creditor, immigration, college, and many more organizations.
The major purposes of the letter of hardship is the request for the concession in your pending dues, outstanding debts, installments, and countless more by providing all the causes of your situation and the possible solutions with the promise of paying back all the conceded amounts.
Frequently Asked Questions
What is a letter of hardship?
A letter of hardship is the expression of the financial situation urging need of financial obligations on others and the request for the financial aids for sometimes written to the lender, creditor, immigration, college, and many more organizations.
How do you write a proof of hardship letter?
You must have to attach all the related documentations of your loss and must have to make a promise of returning all the money after overcoming the financial hardships.
What not to put in a hardship letter?
The voluntary change in employment, luxury purchases and nonessential spending, costs for higher or continuing education, personal investment losses, expenses for criminal legal proceedings need not to be mentioned.
What is an example of a hardship affidavit letter?
The example of a hardship affidavit letters are: applications for asylum, cancellation of removal, deferred action, u nonimmigrant status, college (financial aid), landlord (rent), loan modification, medical bills, mortgage payments, jury duty, short sale, VA (veterans affairs).
