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A demand letter for payment is a formal notice requesting a debtor to pay an outstanding amount by a specific date, often serving as a final warning before legal action is taken. This video reviews essential details about payment demand letters and provides access to a free official template. It emphasizes the importance of sending a demand letter, as it serves to alert the debtor about potential legal consequences, document the reason for the payment, specify the exact amount owed, and express the demand in writing for future legal reference. Additionally, it can be used to propose a reduced settlement as an incentive for timely payment.
