Demand Letter for Money Owed

By | October 27, 2014

Demand letters written for owed money can adopt many different types of tones.

It all depends on what your relationship with a debtor is.


If a letter of this type is being written in an official capacity, you will need to be very formal, but if the person you are writing to is known to you personally, you might want to take the edge of your annoyance at non-payment.

However, most demand letters are written professionally, as money is a sensitive issue.

If you have to write a demand letter, the chances are that your initial (possibly verbal) attempts at getting your hands on money owed to you have failed. So when all else fails, write a demand letter!

A demand letter for money owed will typically hold the following information:


✓ Reason for writing the letter
✓ Amount lent to the borrower
✓ Date on which the amount was lent
✓ Circumstances that prevailed when lending the amount
✓ Payback procedure and timeline set at the time of lending the amount

If you want to maintain a friendly relationship with the borrower, do not be rude in your letter.

Simply state the facts and refrain from using language that is not pleasant.

See also: Letter to Friend Who Owes You Money

You can take ideas from the following sample.


Demand Letter for Money Owed


June 8, 2019

Mr. Rusler Vanwinkle
562 Koontz Lane
Carson City, NV 10295


Dear Mr. Rusler:

I am writing about a loan I made to you amounting $3500 on February 25, 2019, to purchase a new car. As per our agreement (copy of agreement attached), this loan amount was to be fully paid by May 2019.

You had been very prompt with payments until March, but since your last payment of $85, I have not received any money from you despite several reminders over the phone and in writing.

Had circumstances been slightly different, I would have been able to provide you with some more flexibility in payments, but I am strapped for cash at the moment and need to make a lump-sum payment for my son’s college in Tokyo, Japan which I can only do so when you return the money you owe me. I have been continuously trying to contact you regarding this matter for two weeks now, but your refusal to attend my phone calls has left me quite insecure.

Please pay the amount you owe to me within 14 days of receipt of this letter so that we can end the matter here and neither of us has to go through the rigmarole of legal proceedings. Your cooperation in this regard will be highly appreciated.



Felipe Moreno
87 New Springs Ave
Carson City, NV 32541
(878) 000-0000