Dear [Creditor's Name], I hope this letter finds you well. I am writing to you as a responsible borrower who is facing temporary financial hardship due to [briefly explain the reason, such as unforeseen medical expenses or loss of employment]. I have always been diligently repaying my loan on time, but the current circumstances are making it extremely challenging for me to meet my regular monthly payment obligations. Given my dedication to fulfilling my financial responsibilities, I kindly request your understanding and support during this difficult time. I am seeking temporary relief in the form of a reduction in the loan payment amount for a specified period. This temporary reduction will ensure that I can continue to make regular payments without further worsening my financial situation. I acknowledge that this request might affect the overall length of my repayment term, but it provides me the needed breathing space to regain financial stability. I would like to propose the following alternatives for consideration: 1. Reduced Monthly Payments: Requesting a temporary reduction in my monthly loan payment amount, specifically from [current payment amount] to [proposed reduced payment amount], or any other amount that you deem appropriate based on my financial capacity until [mention the approximate duration until which you anticipate needing the reduction]. 2. Deferred Payments: Pleading for a temporary suspension of loan payments, allowing me to put payments on hold until I am in a better financial position. However, kindly note that I would need your guidance on how the deferred payments will be addressed later (e.g., added to the end of the loan term). I assure you that this request for temporary relief is not taken lightly, and I am committed to working towards a long-term resolution that ensures full repayment of the loan. I understand that any adjustments to the loan agreement are subject to your approval, and I am willing to provide any additional documentation or financial information necessary to support my request. Furthermore, I kindly request that you review my situation with consideration for the hardship I am facing and provide a written response outlining your decision. If approved, I will abide by the new terms and make the revised payments promptly in accordance with the agreed-upon schedule. I express my gratitude for your attention to this matter and for your continued support. I value our business relationship and believe that together, we can navigate through this temporary financial setback. Thank you for your understanding and for considering my request. Sincerely, [Your Name] [Your Contact Information]
Alaska Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Alaska Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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FAQ
To request a stop payment release letter, you should contact your bank or financial institution directly. Provide them with your account details and the reason for your request. Clearly articulate that you are seeking a release for a stop payment. This will help expedite the process.
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.
Some examples of events that a lender may consider to be a financial hardship include:Layoff or reduction in pay.New or worsening disability.Serious injury.Serious illness.Divorce or legal separation.Death.Incarceration.Military deployment or Permanent Change of Station orders.More items...?19-Nov-2021
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.
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.
Bank statements showing a reduction of income, essential spending and reduced savings. a report from a financial counselling service. debt repayment agreements. any other evidence you have to explain your circumstances.
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 (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.
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.
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.
