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A demand letter for payment is a notice requesting payment from a debtor for an amount owed by a specific date. It serves as a final warning before legal action. Sending this letter is important as it alerts the debtor, records the reason for the payment demand, specifies the amount owed and due date, and provides written evidence for legal disputes. Additionally, it can be used to offer a reduced settlement. You can find a free official template for a demand letter for payment.