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A payment plan agreement is established between a debtor and a creditor, facilitating the repayment of a debt according to agreed terms. Payment plans are commonly used for expensive items or services, alleviating the upfront financial burden by allowing buyers to make incremental payments. This arrangement is beneficial for sellers as well, who can supplement their earnings by charging interest on the payments. The buyer ultimately pays more than the original price if interest is applied. Payment plans can be an appealing option for customers needing immediate access to goods or services while managing costs over time. The tutorial will explain why payment plans are favored, popular items and services for their use, and how to find a free agreement template.
