How do you write a letter explaining your financial situation?

Asked by: Erica Wuckert DVM  |  Last update: June 16, 2025
Score: 4.2/5 (39 votes)

Write your letter clearly and concisely, following the instructions provided below.
  1. Explain Your Hardship. ...
  2. Provide Documentation to Back Up Your Claim. ...
  3. List Steps You've Taken to Alleviate Your Financial Burden. ...
  4. Clearly State Your Request. ...
  5. State Your Commitment to Paying Your Debt.

How do you write a letter explaining a situation?

Quickly state the fact of the matter and proceed. Briefly explain the circumstance: Keep your letter as concise as possible. After you state the problem, provide a short explanation of the circumstances around your issue.

How to write a letter for a financial issue?

I know that you can understand how it feels like having serious financial problems and I expect you to understand my situation. You can contact me anytime if you want to know anything else regarding my explanation. I am waiting for a kind response from you.

What is an example of a financial hardship letter?

As a Federal Employee my income has been reduced by 20% per pay period. I am now experiencing financial hardship due reduced income. Because my income has dropped considerably I can no longer afford the terms of the original loan.

How do you explain financial hardships?

A financial hardship is an unplanned, unforeseen financial expense that is beyond the employee's means to manage. It is a life changing event that alters the course of someone's day-to-day and is not solely due to loss of employment.

How To Write A Financial Support Letter Step by Step Guide | Writing Practices

24 related questions found

How to write a letter explaining financial situation?

What to include in a hardship letter
  1. The date, your name, address and phone number.
  2. The lender/servicer and loan number.
  3. The date or approximate time frame when the hardship started.
  4. The expected timeframe of hardship — short term (six months or less) or long term.
  5. Describe your goal. ...
  6. State the facts, not emotions.

How do you say I am struggling financially?

Different ways to say you don't have enough money for professional relationships:
  1. I'm feeling the pinch at the moment.
  2. I'm not sure my bank account will cope with it.
  3. My finances are tight.
  4. I'm on a tight budget.
  5. I'm not sure I can afford it.
  6. I'm in the red.

How do I write a letter of financial distress?

Tips for Writing a Hardship Letter
  1. Keep it original. ...
  2. Be honest. ...
  3. Keep it concise. ...
  4. Don't cast blame or shirk responsibility. ...
  5. Don't use jargon or fancy words. ...
  6. Keep your objectives in mind. ...
  7. Provide the creditor an action plan. ...
  8. Talk to a Financial Counselor.

What is another way to say financial hardship?

Also called economic burden, economic hardship, financial burden, financial distress, financial stress, and financial toxicity.

What not to put in a hardship letter?

When you write the hardship letter, don't include anything that would hurt your situation. Here are some examples of things you shouldn't say in the letter: Don't say that your situation is your lender's fault or that their employees are jerks. Don't state that things will likely turn around for you.

What is a letter of financial explanation?

A letter of explanation enables the borrower to answer any questions a lender might have about the loan application. The letter should come directly from you (the borrower) and should align with any documentation provided. In certain circumstances, supporting documentation may be necessary.

How do you write a letter for unable to pay because?

This letter is to let you know that I'm currently having some financial difficulties. I'm not able to pay the complete monthly payment on my account because _____________________________________________. (List your personal reason here – job loss, illness, etc.)

How do you start an issue letter?

A complaint letter format will typically begin with the sender's details, followed by stating who it's addressed to, the date, and then the letter itself. The opening paragraph should state your reason for writing, and the meat of the text will go into detail about the matter.

How do you start a good explanation letter?

How to write an explanation letter in 3 steps
  1. Choose letter format. Clients, team members or students may use print or email for their letters. ...
  2. Explain the situation. To begin writing this type of letter, you might explain the situation or circumstance and any contributing factors. ...
  3. Take responsibility and accountability.

How do you write a critical explanation?

How to Write a Critical Analysis Essay
  1. Read Thoroughly and Carefully. ...
  2. Choose a Thesis Statement. ...
  3. Write an Introductory Paragraph. ...
  4. Carefully Organize the Body of Your Essay. ...
  5. Craft Clear Topic Sentences. ...
  6. Populate Your Essay With Evidence. ...
  7. Summarize Your Analysis in a Concluding Paragraph. ...
  8. Revise as Necessary.

How do you start a letter explaining yourself?

You can follow these steps to write about yourself:
  1. Introduce yourself .
  2. Include the most relevant professional experience.
  3. Mention significant personal achievements or awards.
  4. Introduce personal details.
  5. Use a casual and friendly tone.

How do you describe financial difficulties?

Are complaints about financial difficulties different to irresponsible or unaffordable lending? Financial difficulty is where a borrower can't make repayments to existing credit, or they can only do so with difficulty because a change in their circumstances took place after the credit was provided.

How do I politely say I can't afford it?

Keep it simple and positive. Just say something along the lines of, “I'm so sorry to miss out on the fun, but X isn't in my budget right now.

How do you explain financial hardship?

There are often two main reasons for financial hardship : 1. You could afford the loan when it was obtained but a change of circumstances has meant you can no longer afford the repayments; or 2. You could not afford to repay the loan when it was obtained.

How do you write a letter to describe your financial situation?

Provide quantitative data in your statement, including the amounts of financial assistance you've received and your outstanding education-related debt. Add any plans that you've made for covering educational costs. Mention if you receive educational funding from external sources like scholarships or the GI Bill.

How do you write a convincing hardship letter?

Your hardship letter should include the following essential steps:
  1. Write an introduction. ...
  2. Detail your hardship. ...
  3. Highlight how you're being proactive about your financial situation. ...
  4. State your request. ...
  5. Provide assurance of financial recovery. ...
  6. Submit supporting documentation.

How do you prove you are in financial hardship?

The IRS defines financial hardship as “unable to pay his or her reasonable basic living expenses.” If you owe more than $10,000, you will need to fill out a form detailing your assets, debts, income, and living expenses. If you are sick or disabled, you will need proof from healthcare providers or caseworkers.

How do you describe a bad financial situation?

Financial distress is a condition in which a company or individual cannot generate sufficient revenues or income, making it unable to meet or pay its financial obligations.

How do you use financial hardship in a sentence?

Examples of financial hardship

These authors also made note of financial hardship, specifically debt, that families may face, and its relationship to deprivation. He had staged the row, when his other income made the loss of the special lectureship no financial hardship at all.

How do I professionally say I'm not getting paid enough?

Bring the evidence. Just saying “I feel like I'm underpaid” without being able to back it up won't be enough. If you expect your employer to raise your salary, you need to give them solid evidence that proves your point. Print out / note down your research and make sure you've taken them from reliable sources.