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A demand letter for payment is a formal notice requesting a debtor to pay an owed amount by a specified date. It serves as a final warning before potential legal action by the collector. This video tutorial reviews key aspects of payment demand letters, including the importance of sending one. The letter notifies the debtor of the final attempt to collect, alerts them to possible legal consequences, records payment details, specifies the amount due, and offers a written demand for clarity in any legal disputes. Additionally, it may provide a reduced settlement offer as an incentive. The video will also guide viewers on obtaining a free official template for creating demand letters.