Writing a Convincing Debt Forgiveness Letter (Samples)

Borrowing is one of the cornerstones used to meeting people’s personal financial needs. Whether it’s a property you want to buy, or plan on a project with insufficient funds, the majority of people do turn to borrow as an option. Borrowing isn’t a bad idea. However, before making such a move, it’s essential that you consider a repayment plan for your borrowing. Otherwise, you’ll end up in the world of debts. In some cases, you’ll find yourself struggling to resolve your outstanding debts. When confronted with such situations, sending a debt forgiveness letter can help.

Defining a debt forgiveness letter

In its simple terms, a debt forgiveness letter, also known as ‘cancel your debt’ letter is a letter written requesting your creditor to forgive you the debt as you may not be able to pay everything off. This concept, however, is an undeniably appealing concept that comes with strings attached and other consequences. Therefore, before considering to request for forgiveness from your creditor, always remain vigilant not to enter in the menace of debt In the first place.

After receiving your debt forgiveness letter, your creditor may weigh out certain options and decide whether or not to cancel the debt. Depending on your reasons and the type of debt you owe, the creditor may grant you access to the following:

  1. Debt forgiveness for less than the full balance owed
  2. Full forgiveness of the debt.

Free Templates

Free Debt Forgiveness Letter Template

Sample debt forgiveness letter

    Possible reasons why you may not settle debts as expected

    Sometimes, we may have the best intentions of paying our debts to creditors as originally planned. However, this may be altered due to a number of reasons as mentioned below:

    • Decrease in income
    • Unexpected life events
    • Increased family medical bills
    • Loss of spouse income
    • Failure in business
    • Divorce or death of a spouse
    • Severe property damage from a natural disaster such as cyclones
    • Being jailed for wrongdoing among other reasons

    It’s important to note that these reasons can be caused either by lenders’ fault or out of their control. Nonetheless, this doesn’t mean that debt forgiveness is their right. Rather, forgiveness solely depends on the creditor’s will. Therefore, the purpose of the letter is simply to convince the creditor that the lender is undergoing some personal financial difficulties that are incapacitating him/her for the debt repayment.

    How to write a well convincing debt forgiveness letter

    Writing a forgiveness letter is not just taking a walk in the park. You must articulate your issues in a well convincing manner to win the trust of your creditor. Remember, as a lender, you are 100% responsible for loan repayment. Therefore, in order to get the much-needed debt relief, you must be sincere and convincing enough. The following are some tips that will help you through.

    Use a polite and respectful tone: When drafting your letter, ensure your tone is polite and respectful without any sign of expectation or anger.

    Mention what is relevant: One thing that you wouldn’t want to do is to use unnecessary information such as you have an addiction or you lost your money in gambling and lottery. Such information would only make your creditor angry. Therefore, make sure you stay relevant and direct to the point.

    Prove your hardship: In order to win your creditor’s trust, you can provide evidence of your claims. For instance, you can attach proof of job loss, medical bills, divorce papers, or any other hardship that you are going through and is limiting your financial capability.

    Observe the time limits: Don’t wait till late to write your debt forgiveness letter as this would show your lack of seriousness and loan commitment. Therefore, ensure you notify your creditors of the issue early in time to help them come up with a decision.

    Sample debt forgiveness letter

    [Name of the lender]

    [Address of the lender]

    [City, State, Zip Code]


    [Name of the creditor]

    [Address of the creditor]

    [City, State, Zip Code]

    RE: Debt Forgiveness for the credit card account number _

    Dear Sir/Madam,

    It is with regret that I write this letter to you, notifying you that I am not able to repay your credit as per the original agreement. Due to my physical hardship, I lost my job early this month and have now been surviving on my checks for the past four months.

    I was a sales and marketing manager at A & B Local Chains Supermarkets but got a tragic accident on my way back home from the job. Though not my fault, I will be laid up for the next eight months while I undergo treatment. Due to my reduced income and the medical bills that keep pilling as I continue with my treatment, I do not foresee any changes to my financial situations that would put me in a position to make the payments any time in the future.

    Due to these reasons, I respectfully request that you forgive my alleged debt as my financial status doesn’t support the debt repayment. I have attached my medical bills and proof of accident as evidence to my claims.

    Please respond to my letter through my Address at your earliest convenience. You can also reach me through my email [brian@email.com] or my cell phone +1 818 32222222. Thanks in advance for being considerate and understanding.


    [Lenders name]


    [List of enclosures]

    About This Article

    David Waterman
    Authored by:
    Legal Writing, Tax Law, Real Estate, Technology Start-ups | Graduate in Tax Law BA in History
    David Waterman, an accomplished legal writer and expert in tax law, real estate, and technology start-ups, hails from Rutland, Vermont. He completed his undergraduate studies with a BA in History in 2010 before graduating from Georgetown University Law Center in 2014. During his time at Georgetown, David actively contributed to the Tax Journal and dedicated his efforts to the immigration clinic as a volunteer. Since graduating, he has honed his expertise in tax law, showcasing his passion for the subject matter. Alongside tax law, David's professional interests also extend to the realms of real estate and technology start-ups, reflecting his diverse and dynamic approach to the legal field.

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