Your Information:
Your Name
Your Address
Your City, State Zip Code
Your Phone Number
Your Email Address (optional)

Their Information:
Their Name
Their Address
Their City, State Zip Code

Date:

Salutation:
Their Name:

First Paragraph:
The first paragraph of your letter should simply state the problem.  It should give as much detail about the debt or dispute as possible and as clearly as possible.  The reader of your letter should be easily able to understand your complaint and the timeline of events.  While you may want to vent your emotions, it is best just stay concise.  Remember, if you end up going to small claims court you may be asked to present this demand letter to the judge.

Middle Paragraph:
Use this paragraph to state what you expect them to do upon receiving this letter.  Be specific about what it will take from them to resolve this dispute.  Give exact dollar amounts or specific actions that must take place.   Always give a date that they must comply by.  Be practical in your demands and timeframes showing that you are not being vengeful but realistic.

Last Paragraph:
Lastly, thank them in advance for a quick resolution.  However, state that if they are unwilling to comply that you will have no other option than to file a law suit and take the matter to court. 

Complimentary Close:
Sincerely,

Signature:
Handwritten Signature
Typed Name