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A demand letter for payment is a notice requesting payment from a debtor for an amount owed. It demands payment by a specific date and is used as a final warning before legal action. Sending a demand letter is important as it notifies the debtor, records the reason for the payment, informs of the exact amount owed, requests payment by a certain due date, and can be used as evidence in court. A template for a demand letter can be found online for free.