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A payment plan agreement establishes a contract between a debtor and a creditor, obligating the debtor to repay the owed amount per the agreed terms. These plans are often used for expensive goods or services, benefiting both parties: they ease the financial burden for the buyer by spreading costs over time and can allow the seller to earn additional income through interest charges. While payment plans can apply to a broad range of purchases, they are particularly useful for immediate needs. Information about creating a free payment plan agreement is also available, highlighting its popularity and practicality in various transactions.