Financial hardship letter (template)

Fill in every [PLACEHOLDER], keep it to one page, and send by email so it is dated.

[YOUR FULL NAME]
[YOUR ADDRESS]
[YOUR EMAIL]  |  [YOUR PHONE]

[DATE]

[CREDITOR NAME]
Attention: Customer [Care](/debt-review/debt-care-review/) / Collections
[CREDITOR EMAIL OR ADDRESS]

RE: Financial hardship - account number [ACCOUNT NUMBER]

Dear Sir / Madam,

I am writing to advise you that I am experiencing genuine financial hardship and
to request temporary relief on the account above, which I want to keep in good
standing.

What has changed: [DESCRIBE BRIEFLY AND HONESTLY - e.g. I was retrenched on
[DATE]; I have been signed off work due to illness; our household lost an income
when my spouse passed away]. As a result, my monthly income has dropped from
about R[BEFORE] to about R[NOW].

I have reviewed my budget and, during this period, I can afford R[AMOUNT] per
month toward this account.

I therefore request, for a period of [NUMBER] months:
  - a reduced instalment of R[AMOUNT]; and / or
  - a payment holiday with interest and fees frozen; and / or
  - any hardship arrangement you offer.

I expect my situation to [improve / stabilise] by [DATE / EVENT], at which point
I will resume the full instalment or contact you to review.

Please confirm any arrangement in writing before it starts, and please do not
list the account adversely while we put this in place. Thank you for your
understanding during a difficult time.

Yours faithfully,

[YOUR FULL NAME]
Account number: [ACCOUNT NUMBER]

Hardship is a real, often unexpected, change that reduces your ability to pay: retrenchment or job loss, a serious illness or injury, the death of a breadwinner, a divorce or separation, a business downturn, or a sudden essential expense. Creditors and ombud schemes recognise these as legitimate reasons to seek relief.

The key is that hardship is usually temporary or has a turning point. If you can point to when things will improve - a new job starting, a medical recovery, a season ending - say so, because creditors are more willing to grant short-term relief when there is a credible end date. If there is no end in sight, that is a sign you may need debt review rather than a series of hardship letters.

A hardship letter that only describes the problem often gets a slow or unhelpful response. A hardship letter that also says "I can pay R600 a month for the next four months" gives the creditor something concrete to approve.

Work out that number from a proper budget: net income now, minus essentials, minus your other unavoidable debt payments. Offer a sustainable figure with a little slack in it. Showing the creditor you have done the maths, and that you are offering what you can rather than nothing, builds the goodwill that gets hardship arrangements approved.

• Vagueness. "I am struggling" is not actionable. State what changed, by how much your income fell, and what you can pay.
• Over-sharing or under-sharing. Give enough honest detail to explain the drop in income, but you do not need to attach private medical records unless asked.
• No turning point. If you cannot indicate when things improve, the creditor cannot scope the relief - and you may genuinely need debt review instead.
• Forgetting interest. Ask for interest and fees to be frozen during the hardship period, or the balance keeps climbing while you pay reduced amounts.