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A demand letter for payment is a formal notice requesting payment from a debtor, specifying a due date and serving as a final warning before potential legal action. This video reviews essential details about demand letters, including where to find a free template. Sending a demand letter not only alerts the debtor about the risk of legal consequences but also creates a written record of the payment request, details the amount owed, and establishes a clear due date. It may help resolve disputes and could even facilitate a reduced settlement offer. Compliance with legal standards for drafting the demand letter is also emphasized.