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A demand letter for payment is a notice that requests payment from a debtor for an amount owed, demanding payment by a specific date. This letter serves as a final warning before legal action is taken. Sending a demand letter is important as it notifies the debtor of the attempt to collect the money owed, records the reason for the payment demand, informs the exact amount owed, and requests payment by a certain due date. It also serves as written evidence in case of legal disputes and can be used to offer a reduced settlement. An official template can be obtained for free.
