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A payment plan agreement is a contract between a debtor and a creditor, outlining the repayment terms for a debt. These plans are commonly adopted for high-value items or services, allowing customers to pay in installments, which alleviates the immediate financial burden. This approach benefits sellers by generating additional income through interest charges, which may result in the buyer paying more than the initial price. Payment plans are versatile but are particularly useful for urgent purchases. The discussion includes reasons for using payment plans, popular goods and services, and how to access free agreement templates.