Subject: Urgent Request for Temporary Reduction of Loan Payment Amount — [Your Name] [Your Name] [Your Address] [City, State, ZIP] [Email Address] [Phone Number] [Date] [Creditor's Name] [Creditor's Address] [City, State, ZIP] Dear [Creditor's Name], I am writing to you with great urgency regarding my current financial situation and its impact on my ability to make timely loan payments. I have been a loyal customer of [Creditor's Name] for [X] years, and I have always strived to fulfill my obligations faithfully. However, due to unforeseen circumstances, I find myself facing severe financial hardship that requires your understanding and support. Firstly, I would like to express my utmost gratitude for the financial assistance you have provided me over the years. Your trust and belief in my ability to repay the loan have been the driving force behind my commitment to meet my obligations. The [loan type] has certainly helped me achieve significant milestones and fulfill crucial financial responsibilities. Regrettably, recent developments such as [briefly outline the reason for your financial hardship, for example: unemployment, medical emergency, or family-related matters] have created an unexpected burden that has taken a toll on my financial stability. These circumstances have resulted in a significant drop in my monthly income and have made it extremely challenging for me to manage my loan obligations promptly. Considering the gravity of my situation, I am kindly requesting a temporary reduction in my monthly loan payment amount for a period of [X] months. This reduction would significantly alleviate the financial stress that I am currently experiencing, allowing me to meet my necessary living expenses and prevent further accumulation of debt. While I realize that this request may have an impact on the overall repayment duration, I assure you that it is my utmost intention to restore regular payments once my financial situation improves. I am committed to duly fulfilling my loan repayment obligations and intend to repay the reduced amount in a timely manner. I understand that modifying the terms of an existing loan requires careful consideration and evaluation on your part. Therefore, I have attached relevant supporting documentation, including [briefly mention the enclosed documents, such as recent pay stubs, medical bills, or letters of termination], to provide a comprehensive picture of my current financial predicament. I believe these documents will give you a clear understanding of my financial hardship and increase the likelihood of a favorable outcome. I kindly request that you review my situation at your earliest convenience and respond to my request within [X] days. Your prompt attention to this matter will be greatly appreciated, as it will enable me to make the necessary adjustments to my financial planning accordingly. Please feel free to contact me at [Phone Number] or [Email Address] if you require any further information or have any questions regarding my situation. I am available for discussion and willing to provide additional information or documentation, as needed. Thank you for your understanding, empathy, and consideration during this challenging time. I sincerely hope we can arrive at a temporary agreement that serves the best interests of both parties involved. Yours sincerely, [Your Name]
Arkansas Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Arkansas Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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FAQ
Dear Creditor: Due to a layoff, I am temporarily out of work and am experiencing financial difficulty. Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt.
Explain the reasons for your hardship clearly and concisely. Include any supporting documentation that you have (e.g., copy of your unemployment awards letter). Be specific about the remedy you are seeking, and don't promise to send more money than you can reasonably afford.
I sincerely want to keep regular EMI payments but require restructuring in the terms of the loan. I request that the monthly EMI payments to be reduced so I can pay my EMI on before due date in the future without any failure. I would appreciate if you could restructure the EMI amount of my loan to about Rs.
Due to (Mention reason- Financial problem/ Personal reason/ any other reason), I request you to kindly allow to make the remaining payment in installments i.e (Amount) every (Month/ Week) in order to clear off the debt.
Subject: Request for settlement of my loan. Dear Sir / Madam, I am the holder of Savings/Current Account, A/C No..... (Account Number) in your bank. I was granted a personal loan / business loan / vehicle loan of Rs 10,00,000 by your bank and the repayment period is 5 years and interest rate is 13 percent per annually.
Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.
A "hardship letter" is a letter that you write to your lender explaining the circumstances of your hardship. The letter should give the lender a clear picture of your current financial situation and explain what led to your financial difficulties. The hardship letter is a normal part of the loss mitigation process.
Tips for Writing a Hardship LetterKeep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Couch.
Contact the creditor you've selected and ask the requirements for a letter of credit. You'll need to follow the creditor's procedures to get your letter. Provide any documents the creditor requests, such as the agreement you have with the seller and your financial documents.
Financial hardship may be deemed to exist when the debtor needs substantially all of his or her current and anticipated income and liquid assets to meet current and anticipated ordinary and necessary living expenses during the projected period of collection.
