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A demand letter for payment requests payment from a debtor by a specific date, serving as a final warning before legal action. It notifies the debtor of the amount owed, the due date, and the consequences of non-payment. Sending a formal demand letter is important as it puts the debtor on notice, records the reason for payment, and can be used as evidence in court. It may also include a reduced settlement offer. For a free and official template, watch the video tutorial.
