hardship letter

Hardship letters are pretty commonplace these days. Here are a couple of things to keep in mind while you're negotiating.

• Don???t be in too much of a hurry to settle. The further behind your debt is, the more likely they are to offer a lower settlement.
  
• Start with an offer of 20% and go from there.
  
• Don't lose your temper, get angry, be unprofessional, etc.
  
• Don't offer an amount you can't afford or terms you won't be able to stick to.
  
• If settlement isn't an option, try negotiating for a lower interest rate and removal of late fees (they add up quickly!)
  

Here's a sample letter:


(Date)

(Credit Card Company's Name)
(Address)

(your name)
(address)

Re: (account number)

Dear (creditor):

I am writing to inform you of my present financial difficulty and ask for a settlement of 20 percent of my balance, which equals ($).

Due to a considerable decrease in my income in the past (3, 4 months) and the high interest charges and late fees added to my account, I can no longer (keep up with my payments in the amount of ($) per month, pay the minimum due, etc.).

Once I am informed in writing of your decision to accept my offer of ($), (the total payment will be mailed to you within 15 business days, (#) equal payments of ($) will be mailed to you monthly until the account is paid as agreed, etc.).

At this time, I am making similar arrangements and negotiations with other creditors in order to avoid filing for personal bankruptcy. I have limited funds to work with and can only come to an agreement where the terms are mutually acceptable.

I thank you in advance for your thoughtful consideration of my proposal and appreciate any effort you can make to help me in this regard.

If you wish to further discuss this settlement offer, you can contact me via US postal mail at the address above.

Thank you very much for your time and consideration.

Sincerely,
(Credit Card Holder's Name)