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A demand letter for payment is a notice that requests payment from a debtor for an amount owed. It demands the amount be paid by a specific date and serves as a final warning before legal action. Sending a demand letter is important as it notifies the debtor of the attempt to collect, records the reason for the payment, informs of the amount owed, requests payment by a due date, and can be used as evidence in court. It can also be used to offer a reduced settlement. Follow specific guidelines when drafting a demand letter.
