[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Creditor Name] [Creditor Address] [City, State, Zip Code] Subject: Request for Temporary Reduction of Loan Payment Amount Dear [Creditor Name], I am writing this letter to request a temporary reduction in the monthly payment amount for my loan with [Creditor Name]. Due to unforeseen financial difficulties, I am currently facing significant challenges in meeting my financial obligations. The purpose of this request is to seek your kind understanding and consideration during this difficult time. As a responsible borrower, I have been consistent in meeting my loan obligations. However, I have encountered unexpected circumstances that have negatively impacted my financial situation. [Briefly explain the circumstances — e.g., loss of employment, medical emergencies, or any other relevant events that have contributed to your current financial strain]. These circumstances have resulted in a severe decrease in my income, making it extremely difficult for me to maintain my current loan payment without causing further financial hardship. In consideration of my previous punctual payments, I would like to propose a temporary reduction in my monthly loan payment for a period of [mention the desired duration, e.g., 6 months]. By decreasing my monthly payment, I will be able to manage my finances effectively and ultimately honor my obligations to you without falling further into debt. I assure you that this is not a request for loan forgiveness or a permanent alteration to the original terms of the loan agreement. I fully understand that the terms and conditions of the loan contract will remain unchanged, and I will resume regular payments as soon as my financial situation improves. To provide you with a better understanding of my current financial standing, I have enclosed the following documents: 1. Current bank statements for the past three months. 2. Pay stubs or proof of income for the last three months. 3. Proof of the unforeseen circumstances (e.g., termination letter, medical bills). I am more than willing to work with your organization to explore any alternative solutions that may be available. If a temporary reduction is unfeasible, I would greatly appreciate your guidance regarding any other options or programs that I may be eligible for, which could help alleviate my financial burden. I genuinely value the relationship I have established with [Creditor Name] and wish to maintain a positive financial standing. I kindly request that you review my situation and respond to this letter as soon as possible. Despite my financial challenges, I firmly believe that by working together, we can find a temporary solution that will benefit both parties involved. Thank you for your prompt attention to this matter. I look forward to your favorable response. Sincerely, [Your Name]
Oregon 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
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.
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.
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.
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.
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.
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.
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.
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.
