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A payment plan agreement is created between a debtor and a party owed money, detailing repayment terms. Payment plans are popular for expensive items or services, offering buyers a way to pay in increments and sellers an opportunity to earn interest. Payment plans can be used for various goods or services, with agreements available for free online. Offering a payment plan can benefit both parties, easing financial burden for buyers and allowing sellers to earn more through interest charges. If a buyer needs an item immediately, a payment plan can be a practical option.