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What is financial hardship? Financial hardship is when you are temporarily unable to make a repayment on a debt, such as a credit card, home loan or personal loan. The causes of financial hardship can include sickness, natural disaster, unemployment or over-commitment to credit arrangements.
Some reasons might be purely financial, while others may center around major life events. The most common examples of financial hardship include: Illness or injury. Change of employment status.
What to include in a hardship letter The date, your name, address and phone number. The lender/servicer and loan number. The date or approximate time frame when the hardship started. The expected timeframe of hardship short term (six months or less) or long term. Describe your goal. State the facts, not emotions.
Hardship Examples Illness or injury. Change of employment status. Job Loss or loss of income. Natural disasters.
Burdensome debt is one of the most common causes of financial difficulties. When someone has more debt than they can handle, it can lead to missed payments, late fees, and damage to their credit score. In extreme cases, debt can lead to bankruptcy.
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Significant financial hardship includes when you: cannot meet minimum living expenses. cannot pay the mortgage on the home you live in, and your mortgage provider is seeking to enforce the mortgage. need to modify your home to meet your special needs or those of a dependent family member.
Lenders may ask you for evidence of your hardship, like a doctors certificate or termination notice. Lenders may also ask for bank statements and evidence of income.
I have fallen behind on my payments because my income has dropped considerably since (month) and I can no longer afford the terms of the original loan. Enclosed you will find some documents and statements that will substantiate my present economic situation.

hardship letter