Credit Card Hardship Letter Example

When negotiating your credit card debt Don't sound to eager to settle, get angry or show hesitation.

When witting your Credit Card Hardship Letter don't forget to be calm, professional, polite and firm.

Be patient and take your time. The older your debt gets the harder it is to collect it, your creditors know this and as the days go by they are more likely to cut their losses and settle for anything near what you proposed.

Do not make an offer you cannot afford. Many debts are settled for as little as 7 cents on the dollar. Your opening offer should be no more than 20-25% of the original debt amount

Bankruptcy attorneys and credit counseling agencies can help with your debt settlement if you don't want to handle the task on your own.

Don't tell your creditor you have some specific reason for settling the debt. You will never get a debt settlement if they find out that the reason you want to settle is so that you can buy a new car or a house.

Credit card companies can take legal action against you, if the debt is delinquent for a long period of time.

Get all agreements in writing and make sure you have a file of the delivery receipts and a copy of the letter.

Your letter should be sent via "official mail - return receipt requested" and don't forget to keep a copy for your records.

A credit card debt settlement will show up as a negative on your credit report.

Credit Card Hardship Letter Sample

This letter is intended to be used as a first step in negotiating your debt settlement. It is to be used as a guide only. You must delete any information that does not apply to your situation and add your personal information that you feel is needed.

(Date)
(Company's representative)
(Company's Name)
(Company's Address)
(Company's phone number)

RE: Hardship Letter - Account number: (#)

Dear (Ms/Mr. Brown:)

Due to my bad financial situation I am writing this letter to request a Settlement of 60 to 70 percent.

Since last (month) my income has dropped considerably due to a (illness, job laid off,...), making it difficult to make full monthly payments.

I am enclosing my financial statements and documents that prove my hardship at the moment. (include any late payments statements, car repossession, past due statements, bank statements,...)

I am trying to avoid Bankruptcy and/or Foreclosure and am currently in negotiation with other creditors with whom I need to make similar arrangements.

I kindly request that you seriously consider my offer. I will mail the payment to your organization within five business days, after I am informed by writing of your decision.

If you wish to discuss this settlement offer, I can be reached at (your daytime phone number with area code).

Sincerely,

(Home Owner Name)
(Co-signer Name)
(Home Owner Address)
(Account #)

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