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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, serving as a final warning before potential legal action. This video tutorial covers essential information about payment demand letters and provides access to a free official template. It emphasizes the importance of sending a demand letter, as it alerts the debtor of the risk of legal consequences, records the reason for the payment demand, outlines the exact amount owed, and provides a written record that can be useful in case of disputes. Additionally, it may offer a reduced settlement as an incentive for prompt payment. The demand letter must adhere to specific guidelines.
