If you are having trouble making ends meet, you might be able to ask your lender or credit card
companies for assistance. Oftentimes, writing a hardship letter to explain the details of your
situation can help your case.
What constitutes a hardship?
How do you know if you are experiencing financial hardship? The IRS defines “hardship” as when
you are not able to pay for allowable living expenses.
“Allowable living expenses” are the day-to-day things you need to take care of your family. These
2. Housekeeping supplies
3. Apparel and services
4. Personal care products and services
Another way to look at it: If what you owe each month is more than what you earn, you are
experiencing financial hardship.
There are many different situations that can lead to financial hardship —
Losing your job, work cutbacks, or reduction in pay
These are the most common reasons for financial hardship. If you or a contributing member of your
household loses their job, your finances can take a big hit. If you work an hourly job and your hours
have been significantly cut, this can also qualify. Or, perhaps you got a new job, but it pays far less
than your previous job. Even though you are employed, this can be treated as hardship.
If you are a business owner or are self-employed, a decline in business and revenue is also
considered financial hardship.
Divorce or separation
Besides the legal fees, taking over sole responsibility for mortgage payments and other household
expenses can be overwhelming with only one income. Add shared debt and child support, and the
expenses can stack up quickly.
Illness or injury
Medical bills associated with serious conditions such as cancer or a heart attack, or even the
slower onset of symptoms of Alzheimer’s disease or diabetes can take a significant toll on
Funeral costs due to a death in the family can put a serious strain on finances.
Natural disasters and acts of God, as well as fires or car accidents can cause thousands of dollars
If you or a family member is involved in a costly litigation or is incarcerated, it can have a
devastating effect on your finances.
If you have exhausted all other options to get out of hardship, you may look at selling your home
and downsizing to a cheaper living situation to alleviate some of the financial stress. Cash For
Homes Austin is an Austin-based investor with local experience that pays cash for your home. We are willing to offer a fair market price on your home, and pay cash for your home in days rather than weeks.
Contact us for a consultation today.