How to Write a Letter of Financial Hardship For Credit Card Debt

You may not like it but it is unavoidable to miss or skip writing our financial hardship letter to your credit card issuer. This is a must if you want debt relief. The simple reason why credit card issuers insist on such a move is that it will be certain proof that you are indeed facing a financial problem.

There always be the possibility that you may back track on your oral promise and may claim that the settlement or the debt relief option was offered unilaterally by the credit card issuer.

Secondly, the promises that you make in your financial hardship letter will obviously be considered if you file for bankruptcy. This will prevent you from trying to defraud the credit card issuer despite receiving debt relief. Legal complications apart, a financial hardship letter is matter of record and a formality that has to be completed.

Most of us make the mistake of requesting the credit card issuer to provide the format for the letter. It does not take a rocket scientist just to conclude that the credit card issuer will always include those points that shall be favorable in the future.

For example, you will be asked to admit that you have made a mess up your finances and that you seek debt relief. The actual reason behind the financial hardship will not be specified. This puts the credit card issuer in a position where he or she can easily claim any reason that helps their side of the story.

Secondly, there is a possibility that the terms and conditions of the settlement of the debt relief may be kept purposefully vague when the debt hardship letter is being written. They have been instances where credit card issuers have backtracked on their settlement deal.

They then make use of the financial hardship letter to prove that the actual debt relief option was completely different. Hence, it is always advisable to write the financial letter on your own.

Always stick to the facts. Never try to manufacture facts. If you are going to lie, make sure you are prepared for the consequences and are prepared to back it up when controversy arises.

The simplest way to make sure you include relevant facts is to find out whether it has affected your finances and whether you have proof for the same. Absence of documentary proof is always considered a negative point.

Thirdly, make sure you specify the actual nature of relief that you seek. If you want a fifty percent discount, make sure you put it in writing. Just the word discount may be misinterpreted at a later date.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:

Free Debt Help.