Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount [Your Name] [Your Address] [City, State, ZIP Code] [Email Address] [Phone Number] [Date] [Creditors Name] [Creditors Address] [City, State, ZIP Code] Subject: Request for Temporary Reduction of Loan Payment Amount Dear [Creditors Name], I hope this letter finds you in good health and high spirits. I am writing to bring to your attention my current financial difficulties, which have created a temporary setback in meeting my loan payment obligations. I am reaching out to request your kind consideration for a temporary reduction in my loan payment amount. As a responsible borrower, I understand the importance of meeting my financial responsibilities. However, due to unforeseen circumstances, such as loss of employment, medical expenses, or personal crises, my current financial situation has become challenging. I have always managed my loan payments diligently, but I am experiencing severe hardship. This has significantly reduced my monthly income, creating a precarious situation where I am struggling to meet all my financial obligations. To avoid defaulting on my loan, I kindly request your support by temporarily reducing my monthly payment amount. I would like to propose a temporary reduction in my loan payment of [state your proposed reduced payment amount]. This reduction will help me navigate this difficult period while ensuring I can meet my other essential financial obligations, such as rent, utilities, and necessities. While I understand that this request deviates from our initial agreement, I assure you that this is only a temporary setback. Once my financial situation stabilizes, I will promptly return to making regular payments as per our original agreement. I am committed to honoring my loan, and your assistance during this challenging period will go a long way in helping me get back on track. In support of my request, I have enclosed relevant documentation, including financial statements, bank statements, and any other necessary documentation that demonstrates my current financial hardship. I kindly request that you review my situation and consider my plea for a temporary reduction in my loan payment amount. I truly appreciate your understanding and empathy during this difficult time. Furthermore, I am confident that with your support, I will be able to meet my financial obligations once again. Furthermore, I kindly request that you provide me with a written response outlining your decision regarding my request within [state a reasonable time frame]. Thank you for your time and consideration. I eagerly await your response and remain hopeful for a positive outcome. Please do not hesitate to contact me at [your phone number] or [your email address] if you require any additional information or have any questions about this request. Sincerely, [Your Name]
Connecticut Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out 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.
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.
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.
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.
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.
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.
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.
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.
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.
