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A demand letter for payment is a formal notice requesting a debtor to pay an outstanding amount by a specified date. It is typically used as a final warning before legal action is taken. This video tutorial covers essential information about demand letters and provides a free, official template. The importance of sending a demand letter lies in its ability to alert the debtor of potential legal consequences, document the reason for the payment request, specify the amount owed, and establish a written record for potential court disputes. Additionally, it may offer the debtor a reduced settlement as an incentive to prompt payment. The demand letter should adhere to legal standards.
