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A debt payment plan agreement is established between a debtor and a creditor to facilitate repayment of debts when the debtor cannot pay the full amount immediately. This plan allows for incremental payments, typically on a monthly basis, enabling the debtor to resolve the debt over time. In some cases, creditors may agree to accept a lower total amount or extend the repayment period, especially for long-standing debts. Additionally, if a debtor is consolidating high-interest debts, they may negotiate with a third party to combine outstanding balances into a single agreement. It's essential to document all terms clearly in the contract.