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A demand letter for payment is a final warning to a debtor to pay the amount owed by a specific date to avoid legal action. It notifies the debtor of the amount owed, due date, and reasons for the payment demand. Sending a formal demand letter is important as it puts the debtor on notice, records the demand in writing, and can be used as evidence in court. It may also be used to offer a reduced settlement. Use an official template for a demand letter.
