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A demand letter for payment is a formal notice requesting that a debtor pay an owed amount by a specific date, serving as a final warning before potential legal action. This video tutorial reviews crucial information about payment demand letters and provides access to a free official template. Sending a demand letter is essential as it alerts the debtor about the impending legal consequences, records the payment reason, specifies the owed amount, and establishes a written record that may be needed in court. Additionally, it can be used to propose a reduced settlement to encourage payment. The demand letter must adhere to specific guidelines for effectiveness.
