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A retail payment plan agreement is a contract between a retailer and a buyer for purchasing goods. Payment plans are commonly used for larger purchases to ease the upfront financial burden on customers and can potentially increase total sales for retailers. Often, interest is incurred either immediately or after a set period. Despite potentially higher total costs, customers may prefer to spread payments. Common items for payment plans include furniture, jewelry, appliances, and expensive electronics. Key components to include in the agreement are details about the payment schedule, interest rates, and any penalties for late payments or defaults.
