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A payment plan agreement is established between a debtor and a creditor, outlining the terms for repaying a debt. These agreements are commonly used for high-cost items and services, allowing customers to divide payments into manageable installments. This approach benefits both parties: it alleviates the financial burden for the buyer while enabling the seller to potentially profit through interest charges. Payment plans are versatile and can be applied to various goods and services. For those interested, it's also possible to find free templates for creating such agreements. Ultimately, payment plans are a practical solution when immediate purchase is necessary or beneficial.
