Financial Hardship Letters

Writing A Hardship Fund Application Letter

There are numerous situations in which you may need to write a hardship letter. Depending on your situation and which fund you are writing to, the things that have to be included in the letter will vary substantially. In the vast majority of cases, the letter is designed to appeal for funds to pay for an unexpected expense, such as a funeral, or to ask a creditor for an extension on costs. Either way, there are a number of key things that you have to include in your hardship letter.

How to Write a Hardship Fund Application Letter

The key thing to remember is that you need to be open and honest about your situation. If you have waited for a very long time with writing your letter, particularly if it is in relation to a loan or a mortgage, you also have to outline why you did not consider communicating with your creditor sooner. The letter should not be one in which you beg, but rather one in which you explain what is wrong, why you need help, how long you will need help, and what you aim to do in order to get back on track.

Checklist of Requirements

There are a few things that you have to remember to include in your hardship letter. It doesn’t matter whom you are writing it to. There are a number of criteria that you have to meet. Usually, you also have to follow a specific format. Hence, find out those requirements first. Your letter should, at the very least, include:

  • Your personal details
  • The date it was written
  • Your case or customer number, if you have one
  • The type of hardship request you want to make
  • Why you are in hardship
  • How you have tried avoiding being in hardship, and why this was unsuccessful
  • How you intend to improve your situation
  • Your gratefulness for the consideration given to you
  • Details of any documents that you have included to support your letter

Overall, your letter should be just one page long. Make sure that you ask someone to proofread it for you. You have to make sure that there are no mistakes in the letter.

When Can You Not Write a Hardship Letter

Hardship describes a situation in which you are truly not able to meet certain responsibilities due to situations beyond your control. You are not, for instance, in hardship if you spent your savings on a five star all inclusive vacation and then found that your mortgage monthly amortization cannot be paid. If you have voluntarily left your job or reduced your hours, if you chose not to have certain forms of common insurance in place, or if you are unwilling to remove certain unnecessary expenses from your budget, then it is unlikely that you will be accepted for a hardship grant.

Nobody wants to be in a situation where they need to write a hardship letter. However, certain situations do happen and it is important to know that help is out there for you. Writing a letter is not overly complicated if you follow the tips provided above.

Hardship Fund Application Letter Example

{Name}
{Address}
{Phone #}

{Date}

Dear {Hardship Fund board/administrator}:

I would like to apply for financial relief under the {name of hardship fund}. As an {employee/union member}, I realize the {strike/work stoppage/temporary layoff} was necessary. However, our family just doesn’t have the financial cushion to weather the time without a paycheck.

Our savings and monetary resources are limited due to {reason}. Therefore, we can only go without salary for {time period} before {we face eviction/utilities are shut off/etc.}. A grant of just {amount} would be enough to stave off disaster.

Thank you for considering offering relief. The generosity of {donors/union members/etc.} is much appreciated.

Sincerely,

{Sender Name}

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