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A payment plan agreement is a contract between a debtor and a creditor, outlining the terms for repayment. Payment plans are commonly used for expensive items or services, allowing the buyer to make incremental payments and the seller to potentially earn more through interest charges. Payment plans are flexible and can be used for various goods and services. If interest is included, the buyer may end up paying more than the original sales price. Payment plans can be beneficial for both parties involved.
