Letter of Financial Hardship

A letter of financial hardship is a request for special consideration when somebody is struggling with their finances. The letter is most commonly sent to a lender to request consolidation of outstanding debts, or to request a little leniency in relation to payment deadlines. This can range from medical bills, to credit card debts, to the foreclosure of a property.


Letters of financial hardship may also be written by students who cannot afford higher levels of education, in hope of a grant, scholarship, or reduced tuition.


Starting to Write


Be straightforward and honest with the situation. Creditors cannot recover money that doesn’t exist, so will often be prepared to negotiate more reasonable payments to ensure they recover at least some of it.


Do not lay on the water works or feel sorry for yourself – a sob story will just get in the way of the facts.


Demonstrate that you are prepared to fix the situation and will pay as much as you can. This letter is not to get out of paying the debt, but to explain the reality of your financial hardship.


If requesting special consideration (such as for reduced tuition for an educational institution) don’t just focus on why you cannot afford the fees, but also why you are an ideal student worth making an exception for.

Sample Letters

Letter of Financial Hardship Mortgage Sample

Thomas D. Martinez Loan Agents

4393 Flinderation Road
Northbrook, IL 60062


Dear Mr. Martinez,

I am writing to explain my last missed payment, and also to request some leniency in regards to my outstanding payments.


I have just lost my job, and have no income coming in. When I purchased my house and took on this loan, I had over $6,000 coming in every month, and paying my bills was not an issue. But, in my current situation, I have no money coming in, and making payments is becoming difficult for me.


I am requesting a reconsolidation of my debt so I will have an easier time paying it off. Please contact me with an alternate plan if we can work something out.



Gail K. Lewis

Letter of Financial Hardship for Medical Bill Sample

To Whom It May Concern,

I am writing to inform you that unfortunately I am unable to pay the medical bill associated with the back surgery I received on January 09, 2012.


I am not disputing the amount stated nor am I unwilling to pay it, I am simply not in a financial situation where it would be possible to meet the current terms.


My current income (see enclosed statements) covers my day to day living expenses, leaving too little to make the agreed monthly payments.


Therefore I propose that I pay a smaller amount over a longer period of time to meet the obligation, or until my circumstances change and I can pay the normal amount.


I understand that this is not ideal, but it is the only feasible way for the payment to made in full.


Thank you for your consideration. If you require any further information from me, I will be willing to provide it.



Mrs. Sabrina Dempsey

Letter of Financial Hardship for Short Sale Sample

Dear Arrowhead Homes,

On April 24th I was made redundant from my job of 20 years, as the company is downsizing. This has put me in a very tough financial situation, and I have determined that I simply can no longer meet the terms of our agreement.


Furthermore because the housing market has yet to recover from the 2008 crash, the value of my home is less than what I currently owe on the mortgage, making it impossible to refinance.


I ask for special consideration under these circumstances to help avoid foreclosure. I feel a short sale will be the more beneficial route for both of us.


Please find enclosed copies of a range of financial statements outlining my financial hardship.


Thank you for appreciating the situation, and I hope we can both make the best of it.



Mr. Isaac Lily

Letter of Financial Hardship for School Sample

To Whom It May Concern,

The second year of my course here at Elam College is approaching, however my financial situation has changed greatly and I am unable to meet the same tuition payment as last year.


I have been a single mother living in rental accommodation throughout the course, and I have successfully been able to juggle a fulltime job in the evening, while making full school attendance in the daytime. Unfortunately due to company cost-cutting measures I have lost my job and my unemployment benefit only covers 50% of the previous income.


Though I have been granted the same amount of student financial aid as last year, in my current predicament this is not enough to cover tuition. Therefore I ask for special consideration for a reduction in tuition until a time where I can realistically make payments.


I have done the best I can to support my family, and earning this degree is very important for me and my son’s future. My enclosed transcripts show that I am excelling in every area and maintained a very good grade point average last year. I am passionate about my course, and it would be a great shame if I could not continue education at this level.


If you require any further information or would like to meet me in person to discuss the matter, please contact me on (805) 434-4082.


Yours Sincerely,


Jocelyn Dunning


Letter of Financial Hardship for Scholarship Sample

To: Scholarships Department,

I am writing to request consideration for your Everybody Counts financial hardship scholarship for high school graduates. I will shortly be applying to several colleges, but currently do not have the means to finance any courses.


I have been able to maintain a grade point average of 3.5 this year, and I’m active in extracurricular activities four evenings out of the school week. These are with the female Soccer team, urban dance troupe, and with the school charity “Unite” that tutors illiterate young children in the community.


As you can see I am a very focused student, unfortunately my father is my sole guardian, and he suffers from a debilitating illness, so cannot work. His disability checks will not cover higher education costs, so I am seeking out your scholarship to help me succeed in this next stage of life.


Please pass on any relevant information and thank you for your consideration.



Maggie Douglas

Letter of Financial Hardship for Credit Card Debt Sample

Subject: Financial Hardship

Account: #95763HJ Platinum


To Whomsoever It May Concern,

I am writing to inform you that due to financial hardship I am unable to meet the minimum repayments on my platinum credit card, and based on what I can currently afford I will be unable to pay off the debt without the interest increasing it to an impossible level.


I respectfully ask you to consider accepting a payment plan for 70% of the outstanding balance, so long as interest is frozen. Judging from my enclosed bank statements, I can realistically make $60 per month, until a total of $3,400 is paid.


Please let me know in writing if you accept this agreement. I feel it is the only feasible way to avert bankruptcy and to ensure that you receive a substantial amount of the outstanding balance.


Thank you for your consideration.



Mrs. Eden Watt