Subject: Urgent Request for Temporary Reduction of Loan Payment Amount — Vermont Sample Letter Dear [Creditor's Name], I hope this letter finds you in good health. I am writing to you in light of unforeseen financial difficulties that I am currently facing due to [briefly explain the reason such as job loss, medical emergency, or unexpected expenses]. As a responsible borrower, I am seeking your understanding and cooperation by requesting a temporary reduction in my loan payment amount. I have been a loyal customer of your esteemed financial institution and have always maintained a good credit history. However, the recent challenges have put a significant strain on my monthly budget, leaving me unable to meet my loan obligations as previously agreed upon. Although I understand the importance of honoring my financial commitments, the circumstances have made it increasingly difficult. Considering the financial constraints I am currently facing, I kindly request your immediate assistance in temporarily modifying the loan payment terms. Specifically, I humbly propose the following options for your review and consideration: 1. Payment Amount Reduction: A temporary reduction in my monthly loan payment amount for a period of [state a specific time frame, such as 3-6 months] would greatly alleviate the financial burden I am currently experiencing. I propose a new reduced payment amount of [insert proposed reduced payment amount], which I believe is more manageable given my current situation. 2. Extension of Loan Term: Alternatively, if a reduction in payment amount alone is not possible, I respectfully request an extension of the loan term. By extending the loan term by [mention the desired extension period], I will be able to distribute the financial strain over a longer period, thus ensuring regular payments while managing my financial stability. 3. Interest-Only Payments: Considering my ongoing financial challenges, I propose the option of making interest-only payments on my loan for a temporary period. This arrangement would significantly reduce my monthly financial burden while ensuring that I continue to fulfill my obligations towards the outstanding loan. Please understand that my financial hardship is only temporary, and I am committed to resuming my regular loan payments once my situation improves. I request your understanding, empathy, and support during this challenging phase of my life. To provide further verification and assist in assessing my situation, I have attached relevant documentation, such as bank statements, medical bills, or termination letter if applicable. I hope these documents help in understanding the gravity of my current financial predicament. I sincerely hope that you will consider my request in a compassionate and understanding manner. Your temporary assistance will significantly provide me with the breathing space needed to regain my financial stability and continue our mutually beneficial relationship. Please let me know at your earliest convenience about the feasibility of my proposal. I am more than willing to discuss this matter further and provide any additional information you may require. You can reach me at [your contact number] or via email at [your email address]. Thank you for your time and attention to this urgent matter. I look forward to your prompt response and hope for a favorable resolution that allows me to overcome this temporary financial setback. Yours faithfully, [Your Name] [Your Address] [City, State, Zip Code] [Loan Account Number]
Vermont Sample Letter for Request to Creditor for Temporary Reduction of Loan Payment Amount
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How to fill out Vermont Sample Letter For Request To Creditor For Temporary Reduction Of Loan Payment Amount?
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FAQ
Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt. By that time I hope to be back to work. If my situation improves sooner, I will notify you at that time.
Due to (Mention reason- Financial problem/ Personal reason/ any other reason), I request you to kindly allow to make the remaining payment in installments i.e (Amount) every (Month/ Week) in order to clear off the debt.
Some examples of events that a lender may consider to be a financial hardship include:Layoff or reduction in pay.New or worsening disability.Serious injury.Serious illness.Divorce or legal separation.Death.Incarceration.Military deployment or Permanent Change of Station orders.More items...?19-Nov-2021
Explain the reasons for your hardship clearly and concisely. Include any supporting documentation that you have (e.g., copy of your unemployment awards letter). Be specific about the remedy you are seeking, and don't promise to send more money than you can reasonably afford.
I sincerely want to keep regular EMI payments but require restructuring in the terms of the loan. I request that the monthly EMI payments to be reduced so I can pay my EMI on before due date in the future without any failure. I would appreciate if you could restructure the EMI amount of my loan to about Rs.
Subject: Request for settlement of my loan. Dear Sir / Madam, I am the holder of Savings/Current Account, A/C No..... (Account Number) in your bank. I was granted a personal loan / business loan / vehicle loan of Rs 10,00,000 by your bank and the repayment period is 5 years and interest rate is 13 percent per annually.
Tips for Writing a Hardship LetterKeep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Couch.
Contact the creditor you've selected and ask the requirements for a letter of credit. You'll need to follow the creditor's procedures to get your letter. Provide any documents the creditor requests, such as the agreement you have with the seller and your financial documents.
Dear Creditor: Due to a layoff, I am temporarily out of work and am experiencing financial difficulty. Due to my financial hardship and in order to meet necessary household expenses plus credit payments, I am asking each creditor to accept a reduced payment for the next (#) months on my debt.
Tips for Writing a Hardship LetterKeep it original.Be honest.Keep it concise.Don't cast blame or shirk responsibility.Don't use jargon or fancy words.Keep your objectives in mind.Provide the creditor an action plan.Talk to a Financial Couch.
